ADM Capital’s Cibus Fund Creates New Holding Company With 230-Hectare Berry Farming Acquisition

September 17, 2019

By Lynda Kiernan

London-based private equity and advisory firm ADM Capital announced that its Cibus Fund has acquired the majority of the assets, totaling 230 hectares, of international berry producer Hall Hunter Partnership (HHP). With these assets, Cibus will create a new holding company, The Summer Berry Co.

Led by ADM Capital co-founder, Robert Appleby, and Jason Silm, former head of Agribusiness Investment at VTB capital and director at Macquarie Agricultural Funds Management, Cibus aims to capitalize upon the significant investment opportunities generated by the ongoing evolution occurring in global demographics and trade patterns, and the inability to meet growing regional demand for high-value foods by some of the world’s fastest growing economies.

With a close at $452 million, The Cibus Fund is focusing on investment opportunities across North America, Europe, and Australasia in sustainable food companies as well as in seed, fertilizer, and ag machinery and chemical producers, land-light producers of high-value nuts, fruits, vegetables, meat; aquaculture; processors and value-adders; and distributors and logistics providers.

Having identified soft fruits as a major investment target due to health and wellness-driven consumption trends, demographic shifts, and a gap in UK production, ADM Capital began talks with HHP at the beginning of 2019, resulting in a deal that will see Cibus acquire the majority of HPP’s businesses including HHP Glass, HHP Propagation, HHP Portugal, and the Colworth farm assets held by HHP Farming.

“We are delighted to be partnering with the ADM Capital team to deliver the next phase of our growth plan,” David Kay, group CEO, The Summer Berry Co., told Fruit Net. “The combination of our production assets and our excellent growing teams will allow us to produce the best quality soft fruit available year round.”

“We are keen to work with the other companies within ADM Capital’s portfolio to identify and capitalize on the potential synergies. The team are excited and very much looking forward to the journey ahead.”

The assets that will be the basis for the founding of The Summer Berry Co. are HHP’s southern growing hub in West Sussex comprised of the Colworth Manor Estate, a 26-hectare glasshouse production site growing strawberries, raspberries, blackberries, and blueberries, and a 35-hectare propagation site, according to Fruit Net.  The deal also includes HHP’s farming operation in Portugal, that grows 70 hectares blueberries and raspberries using a polytunnel system. 

Across its holdings, HHP has been taking a progressive stance in integrating cutting edge technology into its production systems, developing and introducing the world’s first raspberry picking robot at its farm in Sussex, and implementing SmartCool’s proprietary optimization technology to reduce the costs of refrigeration

“Buoyed by its sustainable approach and investment in new technologies and geographies, the business is well-positioned to meet the growing demand for berries as a superfood,” said Jeremy Alun-Jones, COO, ADM Capital

This reputation as a superfood, combined with driving consumer, population, and macro trends, have seen the berry category post impressive numbers in recent years. In the 12 months to March 2019, the value of the soft fruits market increased by 7.9 percent, as volumes increased by 3.3 percent, reports Fruit Net. In the UK specifically, between 1996 and 2015 strawberry consumption increased by 150 percent, and raspberry consumption increased by 123 percent, according to a report released by IBIS World, with continued growth in the pursuant years to reach a value of £670 million (US$838 million) in 2018. 

“With global berry consumption growing strongly over recent years we look forward to seizing the opportunity to work with a world-class management team as we execute the business’ ambitious growth strategy and build on the fantastic legacy of the Hall family,” said Alum-Jones.

Moving forward, HHP will continue to operate three farms located in Surrey and Berkshire, that are not included in this deal. 

 
 
– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.

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