Cinven and Label Investments to sell Planasa to EW Group

International private equity firm Cinven today announces that it has agreed to sell Planasa (‘the Company’ or ‘the Group’), a global leader in the agri-tech sector, to strategic buyer EW Group, a family-owned international group, with key businesses in genetics, health, diagnostics, nutrition and food. Financial details of the transaction are not disclosed.

Headquartered in Valtierra, Spain, Planasa specialises in R&D for the breeding of next-generation berry varieties, including blueberries, blackberries, raspberries and strawberries, that better suit the needs of plant growers, retailers and consumers globally. Planasa provides access to its specialised plant varieties through its nursery operations, guaranteeing the provision of high-quality seedlings to plant growers. Planasa also provides ongoing technical support to customers, ensuring its varieties perform to the highest level. The Company has six R&D centres in Europe, Mexico and the US, and has invested more than €25 million in R&D over the last five years. As a result, Planasa has a proven track-record of new variety development. Planasa operates in more than 25 countries and supplies customers from its 13 nursery facilities across Europe, Africa, the Americas and Asia.

Cinven’s Iberia Regional team worked closely with its Consumer Sector team to identify Planasa as an attractive primary investment opportunity based on its market leading position, strong track record of growth, and the significant market opportunity supported by increased global berry consumption. Since acquiring Planasa in January 2018, Cinven has worked in close partnership with the management team to achieve strong performance, including through:

• Supporting the transformation of the business from a predominantly nursery and fresh produce provider at acquisition, to a leading global berry breeder and high value-add operator specialising in plant variety research, development and commercialisation at exit;
• Developing and rolling-out new berry varieties through significant R&D investment, including varieties with improved ESG credentials, that are more resilient to different climate and agricultural conditions, such as drought, pests or diseases, and therefore help reduce the use of water and fertilisers, as well as helping to minimise food waste;
• Completing the acquisition of Advanced Berry Breeding, a Dutch raspberry breeding group with a complementary portfolio of raspberry varieties;
• Professionalising nursery operations through investment in field digitalisation and continued process improvements; and
• Further international expansion to strengthen Planasa’s market positions globally, including expanding core berry categories in Mexico, Peru, China, the US and Morocco.

Commenting on the investment, Thilo Sautter, Partner at Cinven, said:

“Cinven has successfully driven strong growth at Planasa by investing in the core business, expanding globally, significantly growing R&D and attracting a first-class management team. We have worked with management to transform the Group from a founder-led business to a leading global agri-tech operator. We are very proud of the success that the Company has achieved. Planasa is well-positioned to maintain its positive trajectory and we wish the company success in its next stage of growth.”

Miguel Segura, Senior Principal at Cinven, added:

“Cinven’s Iberia and Consumer teams worked together to help Planasa grow internationally, consolidate its leadership in the berry breeding category through expanding into blueberries and blackberries and take its systems and team to the next level.  It has been a successful partnership and we are very happy to see that EW Group will continue to support that journey.”

The CEO of Planasa, Michael Brinkmann, said:

“Cinven has provided huge support to Planasa over the past five years. With Cinven’s guidance and investment, we have professionalised our operations, expanded our international footprint and innovated our product range to become a global leader in our market. We would like to thank the Cinven team for their strategic perspective and financial backing, our employees for their dedication and commitment to our mission, and our clients, suppliers and other partners for their continued collaboration and trust placed in us. We look forward to working closely with our new owners and are sure that this partnership will enable us to push Planasa`s breeding activities to an even higher level.”

Dirk Wesjohann, EW Group commented:

“The acquisition of Planasa will be a milestone for our family group, as it allows us to strategically expand our breeding activities into the area of plant breeding. EW Group has been looking for such an opportunity for years. We are convinced that Planasa, with its leading, innovative genetic varieties, its highly qualified and dedicated management team, and its unique global footprint is the ideal platform for EW Group’s expansion into fruit and vegetable breeding.”

His brother, Jan Wesjohann added:

“The global berry market is one of the fastest growing segments in the fruit and vegetable space. Our family is delighted that with Planasa, we will have an opportunity to enter this attractive market segment. We are committed to contributing to the sustainable growth of the global berry and vegetable industries by supporting strong investment into Planasa’s breeding and nursery capabilities.”

Completion of the transaction is subject to customary regulatory and antitrust approvals.

Cinven was advised by: JPMorgan (M&A), BCG (Commercial), Perez Llorca (Legal & Labour), KPMG (Financial), Deloitte (Tax) and Aon (Insurance).

EW Group was advised by: KPMG (Financial and Tax), and Baker McKenzie (Legal and Labour).

Label Investments was advised by: Escala Capital (M&A) and Garrigues (Legal).