Investment manager Partners Group has acquired a majority stake in Rovensa – a producer of crop nutrition, protection and biocontrol products – from private equity fund Bridgepoint for €1 billion.
Portugal-headquartered Rovensa's portfolio of agricultural products and technologies helps farmers to enhance crop yields and provide food security.
Founded in 1926, the company has three divisions: BioNutrition, which provides agricultural crops with nutrients for growth and healthy development; Crop Protection, which eliminates or prevents biological threats in crops; and BioControl, which offers products based on biological inputs, such as plant extracts and micro-organisms.
Rovensa’s products are sold in more than 70 countries and generate an annual revenue of approximately €360 million.
Partners Group will work closely with Rovensa's management team, led by chief executive officer Eric van Innis, on several strategic initiatives, including: the accelerated development of the company's leading biological solutions portfolio; the continued internationalization of the company; and further acquisitions to build the company’s capabilities.
Andrew Deakin, private equity directs Europe managing director at Partners Group, said: "Rovensa represents a great opportunity to support a resilient business in a market characterized by steady long-term growth. The company is ideally positioned to capitalize on the growing trend towards sustainable agricultural products, which will be a core element of the strategy we will continue to pursue. We were attracted to the company's reputation, talented management team and high-quality product portfolio and see compelling potential for accelerated growth."
Van Innis said: "We have benefitted greatly from Bridgepoint's ownership since 2017 and our recent growth trajectory reflects this. However, with a growing global population, ambitious environmental targets, and health concerns, the agricultural sector remains essential and we believe its strategic importance ensures there are further exciting growth opportunities ahead. We are convinced that Partners Group, with its global presence and focus on entrepreneurial ownership, is the right partner with which to continue building Rovensa's platform and seize those opportunities."
Héctor Pérez, partner responsible for Bridgepoint's investment activities in the Iberian region, said: "We are extremely pleased with the progress made by Rovensa since our acquisition in 2017. Today it leads the field globally in BioSolutions and its products have become a prominent component in sustainable agriculture. The business has made a significant leap forward both through continued organic development, fueled by its product innovation capabilities, and through the execution of six strategic add-on acquisitions. We have enjoyed an extremely productive relationship with a talented management team, led by Eric van Innis and Nuno Loureiro, and are confident of the continued growth of the business in its sector."
A Cuatrecasas team based in the firm’s Lisbon, Madrid and Valencia offices advised Partners Group on the deal. Partners Group was also advised by Ropes & Gray LLP.
The Cuatrecasas team was led by Lisbon office partner Mariana Norton dos Reis, and included associates Francisco Martins Caetano, João von Funcke and Ana Álvarez. The teal also included Duarte Abecasis and Maria José Guillém, as well as Manuel Requicha Ferreira and Agustí Cerdá.
The Ropes & Gray team was led by partners John Newton and Kiran Sharma from the firm’s London office. The team also included Andrew Howard, Amanda Raad, Paige Berges, Laura Kayani, Matthew Martindale, Hayley Stokes and Kwasi Yeboah.
Advisers to Bridgepoint were HSBC, J.P. Morgan, Uría Menéndez, McKinsey and PwC.
The Uría Menéndez team was led by Manuel Echenique and included Alex Bircham, Rachel Brown, Iñigo Navarrete and Alvaro Casacuberta.