November 16, 2020

By Lynda Kiernan, Global AgInvesting Media

Independent ag and food investor Unigrains announced that it has secured EUR250 million (US$296 million) in revolving credit facility (RCF) financing from a collective group of banks.

Co-leading the financing were Crédit Agricole Ile-de-France which acted as agent and coordinator with Société Générale, Caisse d’Epargne Ile-de-France, La Banque Postale, LCL, and Arkéa.

Founded 55 years ago and headquartered in Paris, Unigrains manages approximately $1 billion euros and has partnered with nearly 100 companies at various stages of their development through equity and quasi-equity financial solutions, minority stakes, capital restructuring, strategic investments, and acquisitions.

In recent years GAI News has shared various investments made by Unigrains including:

~ An undisclosed investment made in April 2017 in Sfoglia Torino in support of that company’s strategic growth plan to consolidate the frozen puff pastry sector.

With the help of this investment, Sfoglia Torino was able to acquire 100 percent of Idea Quick Srl, an Italian frozen puff pastry producer. This deal was a transaction under Sfoglia Torino’s strategic expansion plan launched in February 2017 by company CEO Enzo Perrino, and followed closely after Sfoglia Torino’s acquisition of Righi Srl – a leading producer and distributor of frozen savory pies and puff pastry snacks.

~ In July 2017 Unigrains, together with Singapore’s sovereign wealth fund Temasek, and minority investor, sugar group Tereos, invested US$170 million in the malting subsidiary of Axereal Group, the top cereal buyer in Europe and the fifth largest maltster in the world.

The global  beer market was valued at US$530 million in 2016, according to Zion Market Research. However, urbanization, demographic shifts, and rising disposable incomes across growing middle classes in emerging markets are expected to drive significant growth for the segment to a CAGR of 6 percent between 2017 and 2022 to reach a value of US$750 million.

~ In September 2017 Unigrains made its first investment through its €20 million (US$24 million) Iberian Capital Fund in Genuine Coconut. 

Founded in 2014 in Zaragoza, Spain, Genuine Coconut spent two years developing and commercializing a unique and innovative technology that removes the husk of a coconut, and integrates an easy-to-open system applied directly to the fruit, enabling consumers to drink virgin coconut water directly from the coconut shell. By doing so, Genuine Coconut created a product that is certified 100 percent organic, ecologically-friendly, and completely biodegradable.

~ And in September 2018, Unigrains-backed company Fondo Agroalimentare Italiano I (FAI I) acquired a stake in Agrimola, a leading manufacturer, processor, and marketer of chestnuts and fruits, in partnership with Luca Sassi, the company’s CEO and majority shareholder.

With the funds secured through this most recent RCF financing, Jean-François Laurain, CEO of Unigrains, stated that the company intends to “step-up” its activity as a long-term investor in agriculture and food companies.

“This financing facility will enable us, along with co-investment instruments for third-party investors under management, to support the best projects of all sizes in the food industry in France and abroad,” said Laurain. “We can thus continue to increase our investment pace at a time when it’s particularly needed by well-managed companies.”

Oversubscribed, this transaction refinances and replaces a previous EUR125 million (US$148 million) RCF implemented at the close of 2017.

“The success of this operation demonstrates the trust of our financial partners and we thank them,” said Nathalie Besse, CFO, Unigrains. “This instrument, which combines flexibility and additional resources, is a particularly well-suited solution to meet our growth ambitions.”

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.