Stirling Square Capital Partners’ portfolio company Sustainable Agro Solutions (SAS Group) has acquired a majority stake in South African agricultural biotechnology company Afrikelp, providing an exit for RMB Ventures, according to Private Equity Wire. Financial terms were not disclosed, according to Private Equity Wire.
Transaction and exit
The acquisition of a majority stake in Afrikelp provides an exit for RMB Ventures, according to Private Equity Wire. RMB Ventures led a management buyout of Afrikelp in 2019 and became the company’s largest investor.
Afrikelp: business and footprint
Founded in 1971, Afrikelp develops seaweed- and plant-based biostimulants derived from kelp harvested off South Africa’s coastline. Afrikelp’s products are used across more than 45 crops and distributed in over 55 markets.
SAS Group and Stirling Square ownership
Headquartered in Spain, SAS Group operates in more than 100 countries and develops biostimulants, soil improvers and specialist plant nutrition products. Stirling Square acquired a majority stake in SAS Group in July 2021 and has since supported its international expansion through organic investment and acquisitions.
The acquisition strengthens SAS Group’s position in seaweed-based agricultural biosolutions while expanding its international presence, particularly in the US. Afrikelp represents SAS Group’s sixth acquisition under Stirling Square’s ownership, following investments in Biovert, Pevesa Agroscience, Aqua do Brasil, Codiagro and Ceres Biotics.
Reinvestment by Afrikelp management
Afrikelp’s management team will reportedly reinvest a significant proportion of its proceeds in the combined business, supporting the next phase of growth, according to Private Equity Wire.
Widely known context: In private equity-backed M&A, sellers’ management teams sometimes reinvest part of sale proceeds to retain alignment with a new majority owner.
