Biobest to Acquire Biotrop in a Strategic Expansion Move

Biobest Group N.V. (Biobest) and key stakeholders, including Aqua Capital, GIC, and Biotrop’s management, have officially confirmed a binding acquisition agreement. Biobest is set to acquire Biotrop, a dominant figure in Brazil’s flourishing biological market, which anticipates a turnover of BRL 679m (EUR 128m) in 2023. Aqua Capital, a prominent São Paulo-based private equity firm specializing in agribusiness, currently holds a controlling interest in Biotrop.

Under the terms of the agreement, Biobest will procure 85% of Biotrop shares at an enterprise valuation of BRL 2.8bn (EUR 532m). The residual 15% share will transition to Biobest following a three-year interim period. All parties anticipate the transaction’s closure by year-end, pending customary conditions.

The acquisition plays into Biobest’s strategic goal to bolster its biological integrated pest control operations. It marks a transformative step for the company, extending its presence from being a horticulture-focused entity to a significant player in the broader agricultural sector, covering a range of biological solutions.

To fund the acquisition, Biobest plans a capital surge, with contributions from existing shareholders like Sofina, and new shareholders, including Tikehau Capital and M&G Investments, among others.

Biobest CEO, Jean-Marc Vandoorne, highlighted the exponential growth of Brazil’s biocontrol market, emphasizing Biotrop’s substantial role in the industry. He expressed excitement over the synergy opportunities the acquisition presents, particularly in transitioning from a horticultural focus to broader agricultural applications.

Antonio Zem, Biotrop’s CEO, acknowledged the company’s rapid growth supported by Aqua Capital and GIC and recognized the strategic fit with Biobest. He emphasized the joint potential of Biobest and Biotrop in promoting sustainable agriculture, providing viable alternatives to chemical pesticides, and combating climate change through CO2 reduction and soil rejuvenation.

The acquisition positions Biobest as a formidable contender in the booming biologicals sector, especially as countries like Brazil and regions like the EU actively promote sustainable agricultural practices and reduction in chemical pesticide usage.