Phatisa exits West African palm oil business
Phatisa and Finnfund have announced the sale of their majority stake in Planting Naturals.
Private equity firm Phatisa and Finnfund have announced the sale of their majority stake in Planting Naturals, a producer of organic and RSPO-certified palm oil, to PaLenDu, an affiliate of the Dutch Dekker Group.
The transaction terms are undisclosed.
Phatisa, through its Fund 1 – the African Agriculture Fund, and Finnfund first invested in Planting Naturals’ predecessor entity (known as Goldtree) in 2011, in a brownfield investment aimed at rebuilding a palm oil mill in Daru, Sierra Leone, which had been destroyed during the civil war. Since, the company has grown to own 5,500 ha of its own plantations in regions where oil palm has been traditionally planted, and implemented best practices in farming and operations. These have transformed Planting Naturals into a major player in the global organic palm oil market, producing over 7,000 tonnes of sustainable crude palm oil annually for top-tier food and animal feed manufacturers in Europe and Asia.
Planting Naturals operates its own plantations and partners with over 8,000 smallholder farmers in Sierra Leone, providing them with training and certification in RSPO (Roundtable on Sustainable Palm Oil) and organic farming practices.
Jan Hein de Vroe, CEO of Planting Naturals, said: “Our focus on organic and sustainable practices has not only differentiated Planting Naturals from conventional producers but has also contributed to several United Nations Sustainable Development Goals, particularly those aimed at improving livelihoods and promoting sustainable agriculture. Planting Naturals now employs over 2,000 people, positively impacts over 8,000 smallholder farmers in West Africa, and continues to drive positive change particularly in Sierra Leone.”
Martin Kromat, senior partner at Phatisa stated: “Our journey with Planting Naturals has been one of profound impact and growth. Together with Finnfund and the dedicated management team, we have established a sustainable and successful business model in Sierra Leone. We are proud to leave behind a legacy of economic opportunities and environmental and social stewardship in the international organic palm oil market.”
The acquisition by PaLenDu, an affiliate of the Dutch Dekker Group, marks a new chapter for Planting Naturals – and provides a platform for continued growth, whilst enhancing Planting Naturals’ mission of sustainable development.
Ilkka Norjamäki, head of the agri and forestry portfolio at Finnfund added: “We are pleased to have been able to support the development and positive impact generated by Planting Naturals, in close collaboration with farmers and other partners. As an impact investor and development financier, it was critical for us that the company remains committed to responsible business practices under new ownership and will continue supporting local communities by providing work and livelihoods.”
The transaction has received all necessary regulatory approvals.
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