January 15, 2021

By Lynda Kiernan, Global AgInvesting Media

Private equity investor Alantra has acquired a majority stake in Surexport, one of the largest independent berry producers in Europe, through Alantra Private Equity III, which closed at EUR450 million (US$547 million) in 2018.

Founded in 1994 in Huelva, Spain, Surexport is a leading fully-integrated producer of strawberries, blueberries, raspberries, and blackberries. With facilities in Spain, Morocco, and Portugal, more than 80 percent of the company’s revenue comes from overseas markets where it supplies high-quality berries to key European retailers in the UK, Germany, across Central Europe, the Benelux, and Spain.

With yearly turnover of approximately EUR190 million (US$231 million), Surexport has worked to set itself apart from its rivals through its differentiated product portfolio including new and exclusive varieties offering the flavor, appearance, and longer shelf life demanded by retailers and consumers; complementary production in Spain, Portugal, and Morocco; best-in-class logistics and packing facilities including its fully-automated facility recently brought on-line in Huelva, Spain; and its long-standing commercial relationships with Europe’s food retailers.

“We are really impressed by the Company’s track-record, market positioning, level of innovation and high-degree of professionalization,” said Bruno Delgado, partner, Alantra Private Equity. “Following recent strong investment efforts, Surexport is indeed the best platform to build the European champion in the berry industry.”

The health and wellness trend so strong among consumers, combined with the desire for on-the-go natural snacks has made the berry category one of the fastest-growing in the Western European fruit and vegetable market, and a focus for investment.

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 announced in September 2017 that its Cibus Fund acquired the majority of the assets, totaling 230 hectares, of international berry producer Hall Hunter Partnership (HHP). 

And in October 2020, leading vertical farming pioneer Plenty and top fresh berry producer and brand Driscoll’s announced a joint development agreement to grow Driscoll’s proprietary strawberries year-round in Plenty’s vertical indoor farms. 

One month later, in November 2020, The Carlyle Group invested an incremental €35 million (US$41.4 million) in Unifrutti – one of the largest and leading fresh fruit producers in the world.

Alantra’s investment will provide strategic and financial support to accelerate Surexport’s organic growth plans that rely on strengthening the company’s leadership position by increasing product availability to meet year-round demand. Alantra also will help explore Surexport’s inorganic growth opportunities as they present themselves in the highly-fragmented market. One of the company’s goals is to consolidate a recently-launched fresh-cut fruit business for the national market to develop a category that is experiencing high growth in other European markets.

Surexport CEO Andrés Morales, along with the balance of the management team, will remain in place to head the project, thus ensuring continuity and future growth prospects, noted the company in a statement.

“With Alantra’s involvement and support we expect to accelerate our growth plan,” said Morales. “From now on, we will have greater resources to simultaneously execute several organic and inorganic initiatives with the aim of becoming best partners with our clients by granting them an all-year-round supply and a best-in-class service.”

For Alantra, this deal will reinforce the firm’s commitment to the food sector, where it is an existing investor across varying industries along the supply chain, such as Unión Martin, Monbake, Frías Nutrición and Hiperbaric.

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.