Key Takeaways
- • RMB Ventures has exited Afrikelp, a South African algae- and plant-based biostimulant producer, after selling a majority stake to Sustainable Agro Solutions (SAS Group), a portfolio company of Stirling Square Capital Partners.
- • Financial terms of the transaction were not disclosed.
- • RMB Ventures had led a 2019 management buyout of Afrikelp from a listed corporate, making it the lead and largest investor.
- • The deal expands SAS Group's seaweed-based biostimulant capabilities and strengthens its presence in the US and other international markets.
- • Afrikelp's management team will reinvest a significant share of their proceeds as part of the transaction.
Summary
Sustainable Agro Solutions (SAS Group), a portfolio company of European private equity firm Stirling Square Capital Partners, has acquired a majority stake in Afrikelp, a South African company that produces and distributes algae- and plant-based biostimulants, according to Africa Private Equity News. The financial terms of the transaction have not been disclosed.
The transaction marks an exit for RMB Ventures, which invested in Afrikelp in 2019 as the lead and largest investor in a management buyout from a listed corporate. Ewan Gray, partner at RMB Ventures, said the firm's ambition from the outset was to support management in building a globally relevant biosolutions business from South Africa, and that the business had been strengthened, its international reach expanded, and it had been positioned for its next phase of growth.
SAS Group, headquartered in Lleida, Spain, develops and produces biostimulants, soil improvers, plant defence activators and other nutritional solutions for the agricultural sector, and is present in more than 100 countries. The acquisition strengthens SAS Group's capabilities in seaweed-based biostimulants, a key area targeted for expansion, while deepening its presence in the US and other international markets. Xavier Mitjavila, chief executive officer of SAS Group, described the deal as a significant step in the company's strategy to build a global leader in agricultural biosolutions, citing Afrikelp's scientific expertise, proprietary extraction technology and privileged access to Ecklonia maxima.
Founded in 1971, Afrikelp derives its biostimulants from Ecklonia maxima, a kelp species harvested off South Africa's Cape coastline. Its products are used on more than 45 crops, including fruits, vegetables and row crops, and it serves customers in over 55 markets across North America, Europe, Africa and Latin America. Dr Nicole Hart, chief executive officer of Afrikelp, said the business will continue to serve customers with the same focus that has underpinned its more than 50-year history. Enrico Biale, partner at Stirling Square, said the acquisition is another key step in a strategy of sustained organic investment and targeted acquisitions following Stirling Square's investment in SAS Group.
The transaction marks an exit for RMB Ventures, which invested in Afrikelp in 2019 as the lead and largest investor in a management buyout from a listed corporate. Ewan Gray, partner at RMB Ventures, said the firm's ambition from the outset was to support management in building a globally relevant biosolutions business from South Africa, and that the business had been strengthened, its international reach expanded, and it had been positioned for its next phase of growth.
SAS Group, headquartered in Lleida, Spain, develops and produces biostimulants, soil improvers, plant defence activators and other nutritional solutions for the agricultural sector, and is present in more than 100 countries. The acquisition strengthens SAS Group's capabilities in seaweed-based biostimulants, a key area targeted for expansion, while deepening its presence in the US and other international markets. Xavier Mitjavila, chief executive officer of SAS Group, described the deal as a significant step in the company's strategy to build a global leader in agricultural biosolutions, citing Afrikelp's scientific expertise, proprietary extraction technology and privileged access to Ecklonia maxima.
Founded in 1971, Afrikelp derives its biostimulants from Ecklonia maxima, a kelp species harvested off South Africa's Cape coastline. Its products are used on more than 45 crops, including fruits, vegetables and row crops, and it serves customers in over 55 markets across North America, Europe, Africa and Latin America. Dr Nicole Hart, chief executive officer of Afrikelp, said the business will continue to serve customers with the same focus that has underpinned its more than 50-year history. Enrico Biale, partner at Stirling Square, said the acquisition is another key step in a strategy of sustained organic investment and targeted acquisitions following Stirling Square's investment in SAS Group.
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