Key Takeaways
- M&G Investments invests EUR 75 million in Biobest, a leader in biological crop protection and pollination, to promote sustainable agriculture.
- Biobest serves over 13,000 clients in more than 70 countries, offering tailored biological stimulants and pest control solutions that meet strict environmental standards.
- The global pest-control market is growing steadily, with biological control products, Biobest’s specialty, expanding rapidly due to environmental and health concerns associated with chemical pesticides.
- The investment funds Biobest’s acquisition of Biotrop, a Brazilian biological solutions specialist, positioning Biobest as a significant player in South America’s sustainable agriculture market.
- M&G’s Catalyst strategy aims to invest in companies transitioning to positive and regenerative practices, with this investment further solidifying Biobest’s global leadership in sustainable agriculture.
M&G Investments Fuels Biobest’s Sustainable Agriculture Mission
M&G Investments has announced a significant EUR 75 million investment into Biobest, a global leader specializing in pollination and integrated biological pest and disease control. This investment aims to bolster Biobest’s mission to promote sustainable production of high-value crops through biological solutions.
Biobest’s Global Reach and Solutions
Biobest operates as a ‘one-stop-shop’ for over 13,000 clients across more than 70 countries, providing tailored biological stimulants and pest control solutions. These offerings are designed to meet strict environmental and regulatory requirements, helping clients achieve sustainable and profitable agricultural practices.
The Growing Market for Biological Control Products
The global pest-control market, valued at $70 billion, is growing at 3% annually. Within this market, biological control products, which are Biobest’s focus, account for $10-12 billion and are expanding at a robust 11% per annum, explains M&G in its press release. This growth is driven by the increasing recognition of the adverse effects associated with traditional chemical pesticides, including environmental damage and health risks, which is, in turn, boosting demand for Biobest’s sustainable solutions.
Biobest’s Strategic Acquisition and Expansion
The investment from M&G will fund Biobest’s acquisition of Biotrop, a Brazilian specialist in open-field crop nutrition and protection. This strategic move will significantly enhance Biobest’s presence in South America, broadening its range of biological solutions and complementing its existing portfolio. Niranjan Sirdeshpande of M&G Catalyst will join Biobest’s board as a non-executive director to support this growth further.
M&G’s Commitment to Sustainable Investment
M&G’s Catalyst strategy, with a £5 billion purpose-led flexible private assets strategy, is focused on investing in companies that contribute to a transition towards positive and regenerative practices. This investment in Biobest aligns with Catalyst’s ambition to fund innovation that addresses environmental and social challenges while delivering long-term financial returns and positively impacting society and the environment.
Biobest’s Vision for Sustainable Growth
Jean-Marc Vandoorne, CEO of Biobest, welcomed the investment as a landmark transaction that aligns with M&G’s Catalyst strategy. He emphasized that this investment will enable Biobest to further expand in the rapidly developing domain of sustainable agriculture, driving both sustainability and profits.
