Target Company Overview

Royal Bourbon Industries, a key player in the agri-food sector on the island of Réunion, has been operational for over 70 years. Renowned for its role as one of the leading processors of fruits and vegetables in the Indian Ocean, the company has established a strong local presence and is well-regarded for the quality of its products. Under the leadership of brothers Daniel, Patrick, and Régis Moreau, Royal Bourbon Industries has experienced significant growth, expanding its revenue from €300,000 in 1988 to over €20 million in 2023.

In 2023, the company secured a new investment of €1 million from SMALT CAPITAL through its regional investment fund, RUNaissance. This funding is aimed at supporting an ambitious expansion plan, facilitating a total of €4.5 million in investments that will enhance local production capabilities and improve market access for local farmers. With over 150 employees, Royal Bourbon Industries is positioned as a major employer in Réunion, further reinforcing its commitment to the local economy.

Industry Overview in Réunion

The agri-food industry in Réunion plays a crucial role in the local economy, reflecting the unique agricultural practices and customs of the region. With a focus on sustainable farming, there has been a notable shift towards responsible agriculture, which bolsters both food security and the local economy. The island's strategic geographic location also offers opportunities for export, enhancing its competitive edge in the market.

Recent years have seen increased emphasis on strengthening local supply chains and addressing food sovereignty concerns, especially in light of global supply chain disruptions. Local initiatives have been developed to support farmers and producers to meet consumer demand for fresh, quality products. The government's commitment to stimulating the local economy through various funding programs, such as France Relance, has also paved the way for growth in this sector.

Furthermore, investments directed towards technological advancements in food processing and distribution channels will enhance production efficiency, ensuring that local firms remain competitive. This shift promises to attract further investments from both private and public sectors, propelling the agri-food industry in Réunion into a new era of growth.

Rationale Behind the Deal

The investment from SMALT CAPITAL is aligned with Royal Bourbon Industries’ vision to accelerate its growth and enhance local food production capabilities. By financing local agriculture, the deal not only supports the company in realizing its expansion goals but significantly contributes to the resilience of the local ecosystem. This strategic partnership aims to bolster local economic development while providing stable livelihoods for farmers in the region.

The collaboration with SMALT CAPITAL reflects a mutual understanding of the potential for growth within the agri-food sector and the necessity of sustainable practices that address local needs. This funding will facilitate product diversification and improved processing, ensuring that Royal Bourbon Industries can meet increasing demands effectively.

Investor Information

SMALT CAPITAL, a prominent investment firm specializing in private equity, aims to support the growth and transformation of the French economy. The RUNaissance fund, launched in December 2020, primarily focuses on investments in Réunion and Mayotte, distributing a total budget of €20 million to facilitate capital development operations.

With a strong track record, SMALT CAPITAL has successfully invested over €39 million across 48 operations in Réunion since 2002. Their expertise not only provides financial backing but also strategic guidance to entrepreneurs, enabling them to navigate challenges and seize growth opportunities effectively.

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This investment into Royal Bourbon Industries through the RUNaissance fund is viewed as a promising opportunity for both the investor and the target company. The strategic alignment between the firm's goals and the local agri-food sector's needs could yield substantial returns as the industry continues to develop.

Royal Bourbon Industries demonstrates excellent potential for growth, particularly with its established market presence and experienced leadership. The backing from SMALT CAPITAL should enhance its operational capabilities and facilitate further development, which is crucial in a competitive industry.

Moreover, the local focus of this investment aligns with growing trends towards sustainability and food sovereignty, making it a socially responsible endeavor. Successful execution of this deal could serve as a model for future investments in similar sectors, potentially attracting additional investors looking to capitalize on the resilience of local economies.

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