Target Information

Amethis has announced a minority stake acquisition in BH Holding, a prominent Moroccan company specializing in the processing and export of high-value fruits and vegetables. This investment, facilitated through the Amethis Fund III, aims to support BH Holding's growth strategy, particularly by developing agricultural land powered by desalination technologies that embrace sustainability.

BH Holding is a well-structured family group that plays a critical role in the agricultural sector, demonstrating a comprehensive command of the value chain—from production to export. It primarily exports citrus fruits, cherry tomatoes, and berries to North America and Europe. The company is committed to modern agricultural practices and has a strong focus on sustainability and technological innovation.

Industry Overview

Morocco's agricultural sector is a vital component of its economy, significantly contributing to export revenues and employment. The country is particularly known for its favorable climate, which enables the cultivation of a diverse range of fruits and vegetables. With a focus on high-value crops, Morocco has positioned itself as a leading exporter in the Mediterranean region.

The Moroccan government has implemented various policies to support the growth of the agricultural sector, aiming to increase productivity and foster sustainability. Initiatives such as the Green Morocco Plan emphasize modernizing agricultural practices and enhancing the sector's competitiveness on an international scale. These efforts are crucial as global demand for organic and sustainably sourced products continues to rise.

Furthermore, the trend towards sustainable agriculture is shaping the industry landscape in Morocco. Many companies are adopting innovative farming techniques and technologies to decrease environmental impact while increasing output. This aligns with global consumer preferences for sustainability, presenting an opportunity for growth within the sector.

As Moroccan agriculture continues to evolve, it faces challenges such as climate change and resource management. However, investments in water management and agricultural technologies are addressing these issues, positioning the industry for a resilient and sustainable future.

Rationale Behind the Deal

The decision for Amethis to invest in BH Holding stems from the latter's solid foundation and growth potential within a crucial market. With the agricultural sector being essential for Morocco's economy, this investment aligns with Amethis’s strategy to support regional champions committed to sustainable practices.

Moreover, BH Holding's commitment to social impact—employing nearly 3,000 individuals and actively engaging in social programs—reinforces its appeal as an investment opportunity. This collaboration is expected to enhance BH Holding's agricultural capabilities while promoting social and environmental governance principles.

Information About the Investor

Amethis is an impact investment manager founded by Luc Rigouzzo and Laurent Demey, and it is a partner of Edmond de Rothschild Private Equity. The firm specializes in fostering financial, environmental, and social sustainability across Africa and Europe. With over €1 billion in assets under management, Amethis has made over 40 investments, targeting promising medium-sized companies across various sectors.

The company aims to provide growth capital to regional champions, leveraging its extensive international network and expertise to optimize their environmental and social impacts. Amethis operates offices in Paris, Abidjan, Casablanca, Nairobi, Cairo, and Luxembourg, employing a team of more than 50 seasoned professionals with strong regional and sectoral expertise.

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The minority stake acquisition by Amethis in BH Holding appears to be a strategic and prudent investment. BH Holding’s established position in Morocco's flourishing agricultural sector enhances the potential for substantial returns, especially given the growing global demand for sustainably sourced produce.

Additionally, BH Holding's focus on innovation and sustainability aligns with contemporary trends where consumers are increasingly looking for environmentally responsible options. This investment not only facilitates BH Holding's growth but also reinforces its commitment to social development, which is a significant aspect for modern investors.

Moreover, Amethis's extensive background in supporting regional businesses and its commitment to impact investing add a layer of credibility to this deal. Their involvement is likely to unlock new opportunities for BH Holding, particularly in expanding agricultural capabilities through innovative water management technologies.

Overall, this collaboration bears the potential for mutual benefits, positioning both Amethis and BH Holding for long-term success in a dynamic and evolving market.

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