Public Sector Pension Investment (PSP), a pension fund manager for Canada's security forces, is in the final phase of negotiations to acquire Citri&Co, Spain's leading citrus producer. Sources close to the talks have indicated that PSP Investments, with assets under management of approximately $265 billion, has exclusively negotiated the acquisition of a majority stake in Citri&Co, valued at 1,200 million euros.
PSP Investments had expressed interest in Citri&Co, the result of the 2017 merger of Martinavarro and Rio Tinto, before the official opening of the sale process to the market. Miura Capital Partners, which owns 60% of Citri&Co, had organized a competitive process with the help of Lazard, William Blair, and KPMG, but PSP stepped up with an early offer.
PSP Investments' proposal has raised doubts among other internationally renowned investment funds, which have decided not to participate in the process if it goes ahead. This includes big names such as KKR, Apax Partners, and Bain Capital, some of which had already examined Citri&Co's accounts at a preliminary stage.
Miura purchased a majority stake in Martinavarro in 2016. The Spanish fund led by Luis Seguí merged with Rio Tinto a year later and embarked on an acquisitions spree, purchasing Murcia-based Frutas Esther, Alicante's Perales & Ferrer, and Argentina's San Miguel, to create Europe's largest agricultural company specializing in oranges, lemons, and other citrus products. This strategy has increased the company's turnover from 250 million in 2016 to 900 million in 2023, and its EBITDA has reached 100 million. Citri&Co now produces more than 950 tons annually, operating more than thirty packaging plants and managing 30,000 hectares of crops.
The transaction between PSP Investments and Citri&Co is still pending the finalization of details between the parties. It's worth noting that PSP is already a partner of Citri&Co in the exploitation of agricultural land, having signed a lease and sale back agreement in 2022 for a value of 150 million euros.
Source: elconfidencial.com