Agrícola Cerro Prieto
Deal Type
Company sale
Sector
Consumer
Completion Date
30th December 2015
Deal Value
$101m
Company Background
Agricola Cerro Prieto (“ACP”) is a Peruvian enterprise established in year 2000 and engaged in the business of producing, packing and selling agriculture products such as avocado, blueberry, cotton, asparagus, and grapes; the company owns nearly 4,000 Has of farmland, of which just 1,300 Has are in production. Sales revenue in 2014 reached US$ 32 MM with an EBITDA of US$ 9 MM.
Deal Summary
Two shareholders of ACP, the Latam Peru Fund and Latam Growth Fund, were looking to exit their minority stake in the company. In conjunction with ACP's shareholders and advisors, we carried out a search for an investor that could acquire the fund's stake and, at the same time, make an equity contribution. Finally, the combined 8.6% equity stake of both funds was sold to ACP after an equity contribution from a foreign investor. The proceeds from this sale were US$ 9.00 MM.
Value Added
EFIC Partners acted as representative of the Latam Peru Fund and as financial advisor of both investment funds. Prior to the acquisition of the fund’s stake, ACP successfully closed a USD 38 MM new equity issuance, which was entirely subscribed by an American Pension Fund. Negotiations and legal due diligence were carried out directly by EFIC in a tight time frame which required a coordinated closure through the Lima Stock Exchange. The EV/EBITDA multiple that was obtained from this transaction was almost 9.0x (figures as of 2015), which represented a multiple on the higher range when compared with multiples of comparable public companies and recent M&A transactions on the sector.
Agrícola Cerro Prieto deal contacts
Key members of the EFIC Partners deal team crucial in the Agrícola Cerro Prieto transaction
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