Information on the Target

Surexport Compañía Agraria, headquartered in Huelva, Spain, is the leading independent producer and distributor of fresh berries in Europe. The company offers a comprehensive and differentiated product portfolio, including strawberries, raspberries, blueberries, and blackberries. Surexport boasts a substantial geographical presence across Spain, Portugal, and Morocco, and has established long-standing relationships with major European food retailers, supported by exemplary logistics and processing capabilities. The firm reported over €220 million in revenue for the fiscal year 2022/2023, operating across a productive surface of 1,600 hectares.

Recently, Surexport has made strategic strides by acquiring three key add-on companies: Solana, a Portuguese raspberry producer; AG Group, a Moroccan blueberry producer; and Flor de Doñana, a Spanish organic berry producer. These acquisitions aim to enhance production capacity, diversify the product range, and ensure year-round availability of products for top European retailers, reinforcing the company's position as a market leader in the berry industry.

Industry Overview

The berry industry is one of the fastest-growing segments within the Western European agriculture sector, driven by increasing consumer demand for fresh, healthy, and organic food options. The sector has experienced significant growth in recent years, largely due to changing consumer preferences towards healthier diets and the rising popularity of berries as a superfood.

In Spain, Portugal, and Morocco, ideal climatic conditions facilitate extensive berry cultivation, contributing to the region's growing status as a hub for berry production. The summer months see unprecedented demand from European retailers, emphasizing the necessity for producers to adopt strategies that ensure consistent supply throughout the year.

Moreover, the European Union's support for sustainable farming practices and investments in agri-tech innovation are expected to further enhance productivity and quality within the berry sector. This backdrop supports carefully crafted investment approaches aimed at consolidating competitive advantages among key players like Surexport.

As Surexport expands its operational footprint and embraces innovative cultivation techniques, it positions itself strategically to capture a larger market share and capitalize on the growing demand for premium berry products across Europe.

The Rationale Behind the Deal

The strategic acquisitions undertaken by Surexport are significant moves directed at solidifying its leadership in a fragmented berry industry. By enhancing production capabilities and diversifying its product offerings, Surexport not only anticipates an increase in year-round product availability but also aims to leverage synergies between the newly acquired businesses.

These initiatives come at a time when demand for berries is on the rise, thereby fortifying Surexport's market presence and enhancing its ability to effectively serve European retailers. Revenue projections indicate that, with the implementation of these additions and ongoing growth initiatives, Surexport expects to exceed €300 million in revenues over the next three years.

Information About the Investor

Alantra Private Equity, a key player in the investment landscape, has been a significant supporter of Surexport since its entry into the company's shareholding in November 2020. The investment group brings in-depth expertise and experience in multiple sectors of the food industry, with portfolios that include notable companies such as Monbake, Unión Martin, Frías Nutrición, AGOlives, and Hiperbaric.

The investor's strategic involvement has played a vital role in steering Surexport's trajectory towards achieving its long-term goals, providing guidance in the definition and execution of the company's growth plan under the leadership of CEO and founder, Andrés Morales.

View of Dealert

Considering the dynamics of the berry industry and the strategic positioning of Surexport, this series of acquisitions could represent a sound investment decision. The successful integration of Solana, AG Group, and Flor de Doñana not only enhances production capabilities but also extends the company's reach into new geographical markets, providing a robust platform for revenue growth.

Moreover, market trends indicate a sustained rise in demand for berries, supported by consumers’ growing inclination towards healthier food choices. Surexport’s proactive approach to securing these strategic add-ons positions it favorably to meet this demand and capture a larger share of the market.

However, challenges associated with integrating diverse operational frameworks and maintaining quality across different product lines will need to be managed efficiently. As Surexport navigates these complexities, its commitment to quality and sustainability will ultimately determine the long-term success of this strategy.

In summary, this series of acquisitions, backed by a strong investor such as Alantra Private Equity, has the potential to enhance Surexport's market leadership and deliver substantial returns, making it a compelling investment opportunity in the growing berry sector.

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