December 8, 2017

The Global ID Group, a portfolio company of Paine Schwartz Partners, announced it has acquired Bioagricert, a leading food certification and quality control enterprise based in Bologna, Italy, for an undisclosed amount.

Founded in 1984, Bioagricert offers organic food certifications that meet both Italian and international standards, as well as quality certification services, and Protected Designation of Origin (PDO), Protected Geographic Indication (PGI), and Global G.A.P, for not only food but natural cosmetics, textiles, fair trade, and green energy. The company also plays a role in the development of new certification standards in Italy and abroad, and certifies 11,500 operators in Italy, and another 1,500 across Latin America, Southeast Asia, Eastern Europe, and the Mediterranean Basin.

“The acquisition of Bioagricert is an exciting next step in Global ID’s continued strong growth and its leadership position in the food testing, inspection, certification and supply chain services market,” said Brad Riemenapp, CEO of Global ID. “Importantly, Bioagricert adds organic certification to our global suite of products and services, which will enable Global ID to offer a broader portfolio of solutions to our clients.”

Organic, fair trade, and traceability certification is a good fit with Paine Schwartz Partners’ investment thesis. The firm has deployed nearly $2 billion in food and ag businesses that promote  a mission of greater sustainability within the global food chain.

“You can go through our portfolio and see that every company is going to have some element of sustainability,” Kevin Schwartz, CEO and founding partner of the firm, told GAI News in a recent interview for the GAI Gazette. “We are constantly evaluating new opportunities that align with our sustainability goals, all set against the primary mission of the firm to general value for our investors. We have found that in the food and ag industry, there’s fantastic alignment between ESG principles, sustainability, and investment outcomes.”

When asked about the firm’s process for finding upcoming investments, Paine said, “We see consumers continue to focus on healthy food, traceability, and convenience, and those big buckets of consumer demand drive the supply chain. We’re focusing on the production of crops that address those consumer drivers as well as services across the value chain that can provide solutions.” Certainly, Bioagricert is such a provider.

These observations are echoed by the executive team of Bioagricert – Alessandro Lombardi, head of Bioagricert’s Agribusiness, Vito Russo, and Frederico Di Biase.

“Consumers across the world are increasingly conscious about the quality and safety of their food and other products, and that joining with Global ID will enable us to better meet the growing global demand for organic and other certifications,” stated the team in a company statement.

Not only is consumer demand a key driver for the growth of the organic certification and quality assurance industry, but the rapid growth of the organic food market itself calls for increased certification.

The global organic food and beverage market is expected to grow to a value of $327.6 billion by 2022 – tripling the market’s value of $116 billion in 2015, according to new data from Allied Market Research.

Indeed, demand for organic foods and beverages still outstrips supply, indicating a protracted period of growth and maturation for the sector, in which certification will play a key role for consumers.

“Bioagricert has an excellent reputation and a growing customer base, which stem from its long history of certification leadership, and its in-depth understanding of the organic production chain,” said Riemenapp. “We believe there are significant opportunities to drive growth through our complementary service offerings on a global basis, most notably non-GMO certification, GlobalG.A.P. and our ProTerra sustainability program.”

-Lynda Kiernan