SAO PAULO (Reuters) – Aqua Capital, Latin America’s largest agribusiness and food-focused private equity firm, said on Monday that it had sold Fertiláqua, one of Brazil’s leading plant nutrition companies, according to a statement sent to Reuters.
ICL buyers ICL.TA, an Israel-based specialty minerals and specialty chemicals company, paid about $ 120 million plus potential performance-based revenue of 10%, the statement said.
The deal will encourage the expansion of ICL’s crop nutrition business in Brazil, one of the world’s fastest growing agricultural markets and a leading producer of commodities such as soybeans, sugar and coffee. Aqua Capital has owned Fertiláqua since 2013.
“Negotiations amid the COVID-19 pandemic present additional challenges,” said Sebastian Popik, managing partner of Aqua Capital, in an interview after the deal closed. “There is currency volatility and everything is done remotely because no one from the Israeli team is coming here.”
Aqua has $ 650 million under management and has controlling stake in 13 companies in agribusiness, including producers of agricultural inputs, distributors of agricultural inputs, and consumer food companies that make dairy and sell wine. Combined, Aqua-owned businesses have revenues of $ 1.2 billion and employ more than 6,000 people.
Popik told Reuters that a deal to sell Fertiláqua, which distributes agricultural input products using retailers across the country, was reached with ICL after about six months of talks.
This year, Aqua is still preparing to announce the acquisition of a new agricultural input distribution business, said Popik. He declined to reveal details of the impending deal because it has not been made public.
Reporting by Ana Mano; Edited by Steve Orlofsky