The economic boom of the agro-food sector in the Region of Murcia has aroused the interest of several investment funds, which have shown their willingness to invest in at least four large companies in the sector, including the group Frutas Esther, dedicated to the production and marketing of citrus fruits and table grapes. These fruits are important international export products and offer interesting prospects for the future.
Venture capital funds have already carried out several relevant operations in companies in the region over the last two years. An example of this is Moyca, a leading marketer of seedless table grapes and lemons. To be precise, ProA Capital and Miura Private Equity are the most active venture capital firms within the ago-food sector.
José Antonio García, general director of Ailimpo, the Spanish Lemon and Grapefruit Interprofessional Organization, points out that these funds, which are seeking investment opportunities, have long had their sights set on citrus companies, which in recent years have been making huge profits thanks to the strong appeal of their products, especially lemons.
Murcia's Councilor of Agriculture and Water, Miguel Ángel del Amor, said that the Region of Murcia is Spain's main lemon producer, accounting for about 60% of the country's total volume, and exports representing 80% of the total national capacity. This leadership makes it the focus of those investment funds.
The objective now is to prevent a bubble in the sector, with too many private investors willing to enter this business niche, and to avoid generating speculation or take shares in funds that only look for a short term return.
The Council has detected four operations from funds underway, some almost completed. The funds want to take positions within a very globalized market. These companies have grown to such sizes, that they are pushed to undertake new expansion plans. That is why funds are expanding their scope of action to horticultural societies.
These investment funds seek to enter companies with a profitability of 8% and which have own farms in operation, which guarantees a production. In addition to this, it is essential that they have water insured, so they have shown an evident interest in the Government's policy to deal with the deficit of the Segura basin, the same sources said.
The partners of Frutas Esther SA, a company dedicated to the production and sale of stone fruit, with an annual turnover of 80 million Euro, have reached a preliminary agreement with a new investor: the Miura Private Equity fund, as confirmed by official sources.
For the pre-agreement, Frutas Esther has relied on the legal and tax advice of a team specialized in the 'agro-business' sector of Garrigues. Meanwhile, in financial matters, they have had EY and PWC as consultants. The operation will be completed in the coming months.
Source: www.laverdad.es
