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Sustainable Agro Solutions (SAS Group), a portfolio company of European private equity firm Stirling Square Capital Partners, has acquired a majority stake in Afrikelp, a South African company that produces and distributes algae- and plant-based biostimulants. The financial terms of the transaction have not been disclosed.
The deal marks an exit for RMB Ventures, which invested in Afrikelp in 2019 as the lead and largest investor in a management buyout from a listed corporate.
SAS Group, headquartered in Lleida, Spain, develops and produces biostimulants, soil improvers, plant defence activators and other nutritional solutions for the agricultural sector, and is present in more than 100 countries. The acquisition strengthens SAS Group’s capabilities in seaweed-based biostimulants, a key area targeted for expansion, while deepening its presence in the US and other international markets and enhancing its technological expertise. Afrikelp’s management team will reinvest a significant share of their proceeds as part of the transaction.
Xavier Mitjavila, chief executive officer of SAS Group, said: “We are delighted to announce the acquisition of Afrikelp, which represents a significant step forward in our strategy to build a global leader in agricultural biosolutions. Seaweed has been a key area of our portfolio that we have been looking to expand, and Afrikelp brings a highly differentiated combination of scientific expertise, proprietary extraction technology, privileged access to Ecklonia maxima, and an established international customer base. We look forward to working closely with Nicole and the Afrikelp team, combining their expertise with SAS Group’s broader product portfolio and international presence to accelerate growth, deepen our presence in key strategic markets, and bring these solutions to more customers around the world.”
Founded in 1971, Afrikelp derives its biostimulants from Ecklonia maxima, a kelp species harvested off South Africa’s Cape coastline. Its products are used on more than 45 crops, including fruits, vegetables and row crops, and it has customers in over 55 markets across North America, Europe, Africa and Latin America.
Ewan Gray, partner at RMB Ventures, said: “From the outset, our ambition was to support management in building a globally relevant biosolutions business from South Africa. Together, we strengthened the business, expanded its international reach and positioned it for its next phase of growth, while ensuring that sustainability and responsible stewardship remained central to its long-term success.”
Dr Nicole Hart, chief executive officer of Afrikelp, commented: “Joining SAS Group marks an exciting new chapter for Afrikelp. Our businesses share a strong commitment to science, innovation and sustainability, and SAS Group’s established presence in 100 countries provides a unique opportunity to bring Afrikelp’s products and expertise to a broader range of growers around the world. Importantly, Afrikelp will continue to serve its customers with the same focus and commitment that have underpinned the business throughout its more than 50-year history. We look forward to working with SAS Group to accelerate our growth while building on the capabilities, expertise and relationships that have made Afrikelp successful.”
Enrico Biale, partner at Stirling Square, added: “Since our investment in SAS Group, we have supported the business in building a broader, increasingly international platform through sustained organic investment and targeted acquisitions. The acquisition of Afrikelp is another key step forward in this strategy, bringing differentiated technology, scientific expertise, access to the attractive seaweed segment of the biosolutions market, and a best-in-class growth and profitability profile. It further strengthens SAS Group’s product portfolio and presence in key strategic markets, particularly in the US, while creating additional opportunities for innovation and international growth. We look forward to supporting Xavier, Nicole and their teams as SAS Group enters its next stage of development.”
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