Target Company Overview

Grupo Hispatec Informática Empresarial, S.A. ("Hispatec" or "the Company") is a leading provider of software and AgriFood Technology focused on specialty crops. The firm has demonstrated impressive growth in recent years and is embarking on a new development phase in partnership with Three Hills, which will provide additional funding for product innovation and market expansion. This investment is especially significant as it marks Three Hills' third investment in Spain and represents the first deal made through its new impact platform.

Industry Overview in Spain

The specialty crops market in Spain, encompassing fruits, vegetables, olives, vineyards, and nuts, stands as the largest in Europe with an annual market size exceeding EUR 30 billion. Hispatec's innovative product suite has been designed to meet the demands of this evolving agricultural landscape, enabling more than 600 clients internationally, with a rapidly growing presence in Latin America over the past five years. Hispatec's comprehensive solutions span the entire agrifood value chain, from seed to sale, providing a robust platform tailored specifically for the specialty crops sector.

As the agricultural sector increasingly prioritizes efficiency and sustainability, Hispatec's products play a crucial role in enhancing operational performance, which subsequently reduces food loss, lowers consumption of resources, and minimizes greenhouse gas emissions. The Company's mission aligns with the growing global consciousness surrounding sustainable agricultural practices, making it well-positioned to capitalize on favorable market trends.

The demand for traceability among consumers and regulatory bodies, alongside an increase in the global appetite for sustainably produced goods, presents substantial growth opportunities for AgriFood Tech advancements. As Hispatec establishes new partnerships, including an exciting joint venture in Chile, it stands to benefit significantly from the expanding Latin American market, which alone produces over USD 150 billion annually in specialty crops.

Rationale Behind the Investment

This investment marks a strategic move by Three Hills to enhance its footprint in the burgeoning AgriFood Tech sector. The collaboration aims to leverage Hispatec's innovative capabilities and extensive sector knowledge to drive growth in product development and geographic expansion. Three Hills plans to partner closely with Hispatec's leadership to align on strategic initiatives that address market demands and optimize operational efficiency.

Three Hills recognizes that Hispatec’s approach not only delivers financial returns but also generates social and environmental benefits, which are paramount to their investment thesis. By integrating financial growth with sustainable practices, the deal embodies Three Hills’ commitment to fostering impactful business models in a key European market.

Investor Information

Three Hills is a certified B Corporation and innovative investment firm focused on forging partnerships with companies aligned with sustainable and impactful business practices. The firm emphasizes flexibility in funding solutions and shows a strong commitment to nurturing businesses that can drive environmental, social, and economic change.

With a history of investing in sustainable business models, Three Hills is poised to support Hispatec in its growth journey. The firm’s emphasis on collaborating with well-established companies reflects its dedication to ensuring that investments lead to constructive outcomes for all stakeholders involved.

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The investment in Hispatec presents significant potential for both immediate impact and long-term growth. As the AgriFood Tech sector continues to evolve, companies that prioritize innovation and sustainability, like Hispatec, are likely to thrive. Given the growing global focus on food security and sustainable agricultural practices, this investment aligns well with market trends.

Hispatec’s established client base, coupled with its comprehensive product offerings, positions it favorably within the specialty crops segment. The Company’s commitment to reducing resource usage and enhancing operational efficiency resonates strongly with current consumer and regulatory trends, making the firm's solutions increasingly relevant.

Moreover, with Latin America as an untapped opportunity for expansion, the strategic partnership with Three Hills could result in significant growth avenues for Hispatec. As the firm executes its growth strategy—emphasizing product innovation and market reach—it stands to become a formidable player within the global AgriFood Tech landscape.

In conclusion, from an investment perspective, backing Hispatec could be a valuable endeavor, particularly given the synergies between the Company’s mission and the strategic goals of Three Hills. If executed effectively, this partnership has the potential to create substantial value in a rapidly growing sector, benefiting both the investors and the wider community.

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