Hortifrut, a Chilean company, has agreed to buy 100% of the berry company Atlantic Blue, with which it has been in partnership since 2000.
Based in Huelva, Spain, Atlantic Blue specializes in the variety development, production and sales of berries in Europe and Northern Africa.
In terms of company value, the purchase represents an investment of €241 million, or approximately US$280 million.
A total of €24 million was paid on Sept. 30, 2021, and €73.2 million will be paid at closing on November 30, 2021, followed by ten equal annual payments. The rate of interest is determined by adding a 0.5% margin to the consumer price index in Spain. However, a 1% floor and a 4% ceiling apply to the rate.
Approximately 850 hectares will be added to Hortifrut’s growing area thanks to the acquisition, including 400 hectares in Spain, 248 hectares in Morocco, and 200 hectares in Peru.
By purchasing the Moroccan hectares, the company will be able to supply its own blueberries year-round to Europe. Combined with the successful production of raspberries in this country and in Portugal, the company is striving to supply the full range of berries all year round for its European customers.
Furthermore, the transaction includes Atlantic Blue’s farms and facilities, the SAT processing plant, 100% of Euroberry’s commercial platform, which has an annual sales volume of approximately €200 million, as well as Atlantic Blue’s variety and breeding development program for blueberries and low chill cherries worldwide. As a result of this move, the company has gained substantial new growth and investment opportunities in Europe, enabling it to meet the growing demand for high-quality berries from European customers and consumers.
“We are very excited because this is a significant step to boost our growth in Europe, the second-largest market in the world for fresh berries”, says Juan Ignacio Allende, Hortifrut’s CEO.
“Without a doubt, this is one of the most relevant and strategic acquisitions in Hortifrut’s history and will allow us to strengthen our leadership position within the global berry industry.”
Allende explains, “the transaction provides us with the leverage to strengthen and build our variety development and breeding capabilities, enabling us to accelerate growth and deliver a greater product range to our customers around the world, since we will be the only major player with a year-round supply of consistent high-quality berries.”
“Along with this, Hortifrut will continue to provide its high-level service, for which the company is known for globally”.
