Biobest Group contracts to acquire 85% of Biotrop Participações SA

The Belgian Biobest Group contracted the acquisition of an 85% stake in Biotrop Participações S.A. for €444,56 million. The company was valued at €523 million euros. The deal should be completed by the end of the year. It will probably be submitted to the Administrative Council for Economic Defense (Cade).

The remaining 15% will be purchased after a three-year transition period. It was not stated whether this part of the agreement is subject to any conditions.

Biobest, according to the official statement, must finance the acquisition through a capital increase. As the company informed, the new shares will be subscribed by some of its current shareholders (Sofina, "some Belgian families and managers") and by new shareholders (M&G Investments, Sofiprotéol, Tikehau Capital, Unigrains and "several families close to its majority shareholder ", Floridienne).

"To fully capitalize on global growth opportunities, this was an excellent time to be part of a global organization. Biobest and Biotrop together will drive a broad positive impact agenda: our crop protection portfolio offers solid alternatives to chemical pesticides and our organic products directly contribute to mitigating climate change, reducing CO2 emissions and restoring healthy soils. By offering farmers the reliable biological solutions they need, in combination with solid technical advice, we will build a virtuous cycle of loyalty driven by mutual ", commented Antonio Carlos Zem, CEO of Biotrop.

Biotrop is currently controlled by the management company Aqua Capital, the Singapore sovereign wealth fund GIC and its founders. The company was founded in 2018. Its net revenue in 2022 reached R$276,7 million. Net profit reached R$30,9 million.

"The Brazilian market for biocontrol and other biological products is currently estimated at more than US$1 billion. With an annual growth rate of 43%, driven by a favorable regulatory environment adapted to the needs of biological products – Brazil exceeds the growth of any other major market,” he says. Jean-Marc Vandoorne, CEO of Biobest.

In January of this year, Biotrop announced a goal of increasing 80% in revenue. “The market should grow between 55% and 60%. We want to advance above average”, said Antônio Carlos Zem at the time. The plan consisted of increasing participation in the markets of Rio Grande do Sul, Mato Grosso and Tocantins. Also in rice, coffee and sugar cane crops. In international terms, the announced expectation was that 30% to 40% of revenue would result from business abroad.

Find out more about Biotrop from articles in Revista Cultivar:

• Singapore's sovereign wealth fund is Biotrop's newest investor;

• Biotrop launches fungicide at the Rural Show;

• Biotrop plans to register 58 new products by 2025;

• Biotrop invests R$92,5 million in sustainability in the first year;

• Biotrop opens headquarters and thinks about the future of agriculture.