Agricultural inputs company Zaad Group has been acquired by a consortium of South African private and public investment companies for R1.4-billion, which will support its next phase of growth and impact across Africa by expanding its sunflower, vegetable and maize genetics pool, and accelerating growth in the agrochemical and crop protection market in Africa.

The consortium comprises investment management company Women Investment Portfolio Holdings (WIPHold), State-owned asset management company the Public Investment Corporation (PIC), private equity management company Phatisa Food Fund and State-owned development finance institution the Industrial Development Corporation of South Africa (IDC).

Zaad is an agricultural inputs producer and distributor, with a strong base in South Africa and a well-established distribution footprint across key markets in Africa and the Middle East.

It plays a vital role in supporting food production with its seed, crop protection and agrochemical products.

It serves the commercial farmer market in South Africa, as well as smallholder and emerging farmers across Africa, the consortium says.

The transaction structure will further enable Zaad to acquire the remaining 60% in vegetable seed company EA Seeds.

“Agricultural inputs are a cornerstone of food security and Zaad occupies a strategically important position within this value chain. This transaction contributes to Africa’s agricultural resilience in the face of increasing volatility in the global supply chains,” says WIPHold Group CEO Gloria Serobe.

Zaad’s operations are centred on four complementary businesses.

Agricol is a South African seed company that develops high-quality sunflower and field seed varieties, supported by strong research and development capabilities, while Farm-Ag specialises in the manufacture and distribution of crop protection products and agrochemicals, supplying farmers with dependable, quality chemicals.

Further, Netherlands-based vegetable seed genetics company Bakker Brothers provides access to premium varieties tailored to regional growing conditions.

EA Seed operates across East and Southern Africa, and provides seed and input solutions through in-country distribution networks that extend Zaad’s reach into some of Africa’s most important agricultural markets.

“Zaad operates in niche hybrid seed and crop protection segments. The company has in-house research and development capabilities that create intellectual property for high-quality agricultural input products that significantly enhance yields for farmers and contribute to food security,” says PIC CEO Patrick Dlamini.

It supplies more than 100 000 farmers around the world and has a large distribution network that provides access to new emerging markets, he adds.

Zaad and its subsidiaries have strong management teams in place.

The consortium will partner with Zaad's management to support its next growth phase and unlock additional synergies across the group.

The consortium adds that it is committed to food security, transformation and sustainable growth.

The transaction ensures that one of Africa’s most important agri-inputs businesses, which produces critical seeds, agrochemicals, crop protection products and which has a deep agri-industry knowledge and expertise, is in African hands, the companies say.