Argentinean Los Grobo sells 75% of group to Victoria Capital fund
Dec. 8, 2016
Victoria Capital Partner fund has invested US$100 million in the Argentinean Los Grobo Group, one of the main players in the agribusiness space. In addition, for an undisclosed amount, they have bought 75% of the company, which today values $550 million, manages 700 employees, and sows 50,000 hectares.
Grobocopatel continues to be the president and Horacio Busanello the CEO.
Members of the Victoria Capital fund have joined the IFC, the financial arm of the World Bank; the Dutch bank FMO; and the University of Texas after entering the country for the first time.
Victoria Capital has a decades-long presence in Argentina. This fund, originally known as DLJ, made its debut with the purchase of Peñaflor, the powerful wine conglomerate, and became a shareholder of Zucamor (carton packaging) and seed producer Satus Ager. In 2011, they separated from Credit Suisse, abandoned the name DLJ, and adopted their current name in honor of the unique ship that survived the expedition to the Magallanes. Headquartered in New York, with offices in San Pablo, Bogotá, and Buenos Aires, Victoria has invested in the Colombian construction company Corona; the Santillana publishing house in Spain; and Arcos Dorados, the McDonald's franchise. Banco Itaú participated in the operation.
Carlos García and Santiago Cotter, members of Victoria Capital, explained that agribusiness in Argentina is a competitive and sustainable industry.
Grobocopatel said they had sold part of the group to take advantage of the political and economic climate. The group provides a strong global platform for quality investors, and he believes they need to be at the center of the flows of knowledge and capital. Busanello added that they expect to double the size of their business in a short time.
They explained they will reinforce Los Grobo's position as a leader in services that integrate the needs of the producer in a single place.
The first crops they will produce at this stage are legumes, such as yellow peas, Canadian lentils, and chickpeas, for which plantation has already begun. The managers expect to see a boom in these crops, similar to that of soy, with India increasingly demanding more of these products.