Biobest Group is set to acquire Brazilian biologicals company Biotrop Participações s.a for USD$570 million.
Biotrop is controlled by Aqua Capital, a São Paulo-based private equity firm with an agribusiness focus. Singapore investment fund GIC took a minority stake in Biotrop in July 2021. Biotrop is expected to realize BRL 679m (EUR 128m / USD 136m) turnover in 2023, according to the 7 September statement.
Biobest will acquire 85 percent of the shares based on an enterprise value of BRL 2.8bn (EUR 532m / USD 570m) on a fully diluted basis. The remaining 15 percent will be acquired by Biobest after a transition period of three years, the statement said.
“To finance this transaction, Biobest will proceed to a capital increase which will be subscribed by some of its existing shareholders (Sofina, some Belgian families, and management) and by new shareholders (Tikehau Capital, M&G Investments, Unigrains, Sofiprotéol and several families close to its majority shareholder, Floridienne),” the statement continued.
Antonio Zem, CEO of Biotrop commented on the deal: “With the support of Aqua Capital and GIC, we were able to roll-out a winning biologicals strategy in Brazil and prepare for market entry in other markets. Our company is growing at an exceptional pace. To fully capitalize on global growth opportunities, this was a great time to become part of a global organisation.”
Biobest CEO Jean-Marc Vandoorne commented: “This is a landmark transaction for Biobest, building further on a successful M&A strategy in addition to healthy organic growth. The Brazilian market for biocontrol and other biologicals is currently estimated at more than USD 1bn. With an annual growth rate of 43%, powered by a supportive regulatory environment tailored to the needs of biological products – Brazil outpaces growth in any other major market.”