Investcorp to sell majority stake in Spanish agri services firm Agromillora

Bahrain-based asset manager invested in Agromillora in December 2016

Investcorp. Courtesy Investcorp

Investcorp, the alternative asset manager that counts Mubadala Investment Company as its biggest shareholder, sold its majority stake in Agromillora to the company's founders and investment holding company Edify for an undisclosed sum.

The Bahrain-based asset manager invested in the Spanish company in December 2016 and has worked closely with its founders and management team to drive growth through international expansion, it said in a statement on Monday.

This included supporting Agromillora to increase its market position, investing more than €30 million ($32.9m) in growth initiatives across Europe, the US, Latin America, and Australia and boosting the adoption of high-density plantation models.

“Since our acquisition of Agromillora, we have witnessed the hard work and passion of the entire team to help grow the business and show true innovation in the agricultural sector,” said Yusef Al Yusef, head of Investcorp’s Private Wealth.

Agromillora has a network of 11 production subsidiaries across nine countries, with clients in more than 25 countries.

The company provides advanced plant propagation services to the agricultural industry with a focus on permanent crop producing trees including stone fruit trees, citrus trees, almond and other nut trees, olive trees, berries and vines.

Established more than four decades ago, Investcorp has grown to become one of the leading alternative asset management companies in the region, with investments across private equity, real estate, credit, absolute return strategies, infrastructure and insurance asset management.

It had $40.4 billion in total assets under management as of December 31, including assets managed by third-party managers.

The company has been on an acquisition spree during the coronavirus pandemic to capitalise on lower asset valuations and is bullish on the growth prospects for its portfolio.

It aims to more than double its assets under management to $100bn in seven years’ time, ‏‏‏‏executive chairman Mohammed Alardhi told Bloomberg in September.

Since 2012, Investcorp has invested €1.7bn in companies across Europe, and this month, it reached an agreement to sell Italian motorcycle equipment maker Dainese to Carlyle, one of the world's largest private equity companies, for €630m.

The company's sale of Agromillora comes after it exited other investments in other Spanish companies, including Grupo Esmalglass-Itaca and Fritta.

Updated: March 28, 2022, 9:19 AM