Global investment firm KKR on Friday announced that it has signed definitive agreements with UPL Limited to invest $300 million for a 13.33% stake in the latter’s subsidiary Advanta Enterprises Limited, which is engaged in the research and manufacturing of agricultural seeds.
According to a report in Moneycontrol on Friday, UPL’s another arm, UPL sustainable Agro Solutions, is in separate talks with the Abu Dhabi Investment Authority (ADIA), Brookfield, and TPG to raise about $200 million for a 9.09% stake.
KKR will route the investment in Advanta through its Global Impact strategy, which invests in businesses delivering solutions to address critical global challenges. As of December 31, 2021, KKR has committed over $25 billion in equity globally to climate and environmental sustainability investments.
Upon completion of the transaction, Advanta will operate as a standalone platform and aim to become a global sustainability leader in seeds, KKR said in a statement.
KKR looks to collaborate closely with Advanta to further expand its business regionally and globally, including through bolt-on acquisitions, and maximise the company’s growth potential by leveraging KKR’s deep expertise and experience in strategic carve-outs, the agricultural sector and ESG best practices.
“Advanta has built a diversified platform with differentiated products and an excellent track record, and we are excited to leverage KKR’s global network, operational and ESG management expertise to strengthen its business, implement industry best practices, and achieve its next phase of growth,” said Gaurav Trehan, partner and CEO of KKR India.
Hyderabad-based Advanta breeds plants and uses biotechnology to produce new hybrids and varieties of field crops and vegetables. With a diversified portfolio of over 900 hybrids across more than 40 crops, Advanta claims to be a global leader in tropical and subtropical corn, and maintains leading positions in many regions in corn, forages, grain sorghum, sunflower, canola, rice, and vegetables.
UPL Ltd, formerly United Phosphorus Ltd, is a producer of crop protection products, intermediates, specialty chemicals and other industrial chemicals. The group acquired a significant minority stake of 48.4% in Advanta in 2006.
“Since the acquisition of Advanta in 2006, UPL has built Advanta into a leading global seed company with a presence in more than 80 countries. As sustainable farming practices increase around the world, Advanta is well poised for its next leg of robust growth. We are working closely with KKR to build on Advanta’s strong platform to deliver continued success in this next phase of evolution,” said Jai Shroff, Group CEO of UPL.