seeds

Paine & Partners Acquires Brotherton Seed

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Suba Seeds USA, a subsidiary of Suba Seeds Group BV, a specialty vegetable and legume seed producer and a portfolio company of Paine & Partners, has acquired Brotherton Seed Company.

Brotherton Seed is a breeder and producer of pea and bean seeds used by commercial customers in the North American pea and bean processing market. The company operates two production facilities –one each in Moses Lake, WA and Quincy, WA, and maintains a network of thousands of acres of seed growers across the Pacific Northwest. Brotherton Seed was founded in 1936 and is headquartered in Moses Lake, WA (www.brothertonseed.com).

With the closing of this acquisition, Jerome Brotherton – the managing director of Brotherton Seed – will become a full-time consultant to the company under Suba’s ownership, and Brotherton’s entire management team will join Suba.

“The acquisition of Brotherton Seed is a great next step for Suba as it looks to expand its presence and products in the growing global market for specialty vegetable seed,” said Angelos Dassios, a partner at Paine & Partners.

Suba is a producer, packer and distributor of specialty vegetable seeds and is the world’s leading producer of cilantro. The company’s portfolio of crops – supplied through a network of more than 1,000 growers – includes beans, peas, radish, cabbage, alfalfa, carrots, chicory and onion. Suba is a contract supplier to major seed companies and also sells to the professional, semi-professional and hobby garden markets. The company was founded in 1974 by Augusto Suzzi and is headquartered southeast of Bologna in Longiano, Italy (www.subaseeds.com).

“The acquisition of Brotherton Seed further expands both Suba’s presence in the US market and its position in large seed vegetable production, globally,” said Marcello Tumedei, Chief Executive Officer of Suba. “We see significant growth potential in this combination, driven by cross selling and production opportunities, both by leveraging the expanded grower network and through expanding Suba’s offering to its international customer base.”

Paine & Partners acquired Suba Seeds in October 2015. The firm has previously invested in the seed industry through a predecessor fund that invested in Seminis – a developer, producer and marketer of vegetable and fruit seeds that was sold to Monsanto in 2005; and in Advanta – an agronomic seed company that was sold in 2006 to United Phosphorus.

Paine & Partners provides equity capital for management buyouts, going private transactions, and company expansion and growth programs, for companies operating in the food and agribusiness industries.  The firm is currently investing through its $893 million Paine & Partners Fund IV, which is solely dedicated to agribusiness investing. Paine & Partners was founded in 2006 and has offices in New York, Chicago and San Mateo, CA (www.painepartners.com).

© 2016 Private Equity Professional • 7-15-16

Paine & Partners Acquires Suba Seeds

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Paine & Partners has signed an agreement to acquire Suba Seeds Company, a specialty vegetable and legume seed producer based in Italy.

Suba is a producer, packer and distributor of specialty vegetable seeds for professional, semi-professional and hobby garden markets. The company is also a contract supplier to major seed companies. Suba is the world’s leading producer of coriander (cilantro), and its portfolio of core crops include varieties of beans, peas, radish, cabbage, alfalfa, carrots, chicory and onion. Suba is supplied with its seed products through a network of more than 1,000 growers.  The company was founded in 1974 by Augusto Suzzi and is headquartered southeast of Bologna in Longiano, Italy (www.subaseeds.com/eng).

Paine & Partners provides equity capital for management buyouts, going private transactions, and company expansion and growth programs, for companies operating in the food and agribusiness industries.  The firm currently invests through its $893 million Paine & Partners Fund IV, which is solely dedicated to agribusiness investing. Paine & Partners was founded in 2006 and has offices in New York, Chicago and San Mateo, CA (www.painepartners.com).

Paine & Partners has previously invested in the seed industry through a predecessor fund that invested in Seminis, a developer, producer and marketer of vegetable and fruit seeds that was sold to Monsanto in 2005; and in Advanta, an agronomic seed company that was sold in 2006 to United Phosphorus.

“Our acquisition of Suba will provide Paine & Partners the opportunity to leverage our substantial in-house seed investment expertise and operating knowledge across the seed industry to build a global leading specialty vegetable seeds production platform,” said Kevin Schwartz, President and a founding Partner at Paine & Partners.

Paine & Partners intends to build on Suba’s competitive advantages by expanding into new markets, enhancing Suba’s portfolio with higher margin products and making strategic acquisitions.  “Suba has built an unmatched reputation for meeting the needs of our customers with our high quality and reliable seed products since our founding more than 40 years ago,” said CEO Marcello Tumedei.  “As we look toward the continued growth of our company, we have found an ideal partner in Paine & Partners, who shares our vision and confidence in Suba’s long-term growth prospects.  Paine & Partners has a proven track record and unparalleled expertise in agribusiness, and we look forward to benefiting from their experience and their resources as we take Suba to the next level.”

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-28-15

Lariat Partners Acquires Montana Seed and Chemical

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Northern Seed, a portfolio company of Lariat Partners, has acquired the assets of Montana Seed and Chemical. This is the second add-on acquisition completed by Northern Seed.

Northern Seed, acquired by Lariat Partners in November 2013, is a distributor of certified seed and provides seed conditioning and treatment services to growers in the Montana area. The addition of Montana Seed and Chemical to Northern Seed will add market share for the company’s seed distribution business in the Yellowstone valley and into Eastern Montana and Northern Wyoming. Northern Seed also owns Westfeeds, a manufacturer and distributor of animal feed and nutrition products based in Billings, MT (www.westfeeds.net). Northern Seed is headquartered in Butte, MT (www.northernseedllc.com).

“Given Lariat’s emphasis on investing in specialty agriculture products and services that improve the efficiencies and yield for growers, the acquisition of Montana Seed and Chemical is an ideal fit for us,” said Kevin Mitchell, Co-Founder and Managing Partner of Lariat. “We are excited about the new opportunities created by this add-on acquisition and we look forward to working closely with Ron Ueland and the rest of the management team at Northern Seed to execute their exciting vision for growth.”

Lariat Partners invests in lower-middle market companies that are active in a number of industries, including specialty agriculture and energy & environmental services. The firm was founded in January 2013 by Jay Coughlon and Kevin Mitchell and is based in Denver (www.lariatpartners.net).

“We are very proud to have an agricultural-focused investment partner like Lariat, who is committed to building a quality driven supply chain for the benefit of the region’s producers, both in farming and livestock,” said Ron Ueland, President of Northern Seed. “This acquisition enhances the ability to get these producers what they need, with quality supply and information, now and into the future.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-11-14

Gladstone, Broadgate, and Highline Equity Acquire Star Seed

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Gladstone Investment Corporation, Broadgate Capital, and Highline Equity have acquired Star Seed in partnership with the senior management of the company.

Star Seed is a supplier of national brand name seed varieties including Garst, Bayer CropScience, Agripro Wheat and others. The company was founded in 1920 and is based in Osborne, KS (www.gostarseed.com).

“Gladstone Investment is excited about partnering with Broadgate, Highline and the talented and experienced management team at Star Seed. We look forward to the continued growth of the business and building on the success of the management team over the past several years,” said Kyle Largent, Director of Private Finance at Gladstone.

Gladstone Investment Corporation is a publicly-traded business development company that seeks to make debt and equity investments in small and mid-sized businesses in the United States in connection with acquisitions, changes in control and recapitalizations. The company is based in McLean, VA (www.gladstonecompanies.com).

Highline Equity invests in companies in the manufacturing, distribution, and business services sectors that have a minimum EBITDA of $2 million. The firm was founded by Dan Arenberg and is based in Denver (www.highlineequitypartners.com).

Broadgate Capital invests subordinated debt, preferred stock, and common equity in companies with annual revenues greater than $10 million and EBITDA of at least $2 million. The firm invests across a range of industries and is effectively industry agnostic but prefers to invest in companies operating in niche markets or that have proprietary technologies or branded products. The firm is based in Southlake, TX (www.broadgatecap.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-13-13