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Vittia group acquires control of biopesticide company Biovalens
May. 26, 2017
The Brazilian fertilizer Vittia group announced the acquisition of 80 percent stake of the biological pesticides company Biovalens, which is based in Uberaba in Minas Gerais state, Brazil.
With the deal, the value of which was undisclosed, the conglomerate, headquartered in São Joaquim da Barra (state of São Paulo), increased its participation in the sector with complementary products, José Roberto Pereira de Castro, marketing and commercial director of Vittia group, told Broadcast Agro.
“It is a company with few assets, but with great potential value. One of the Biovalens products, for instance, is a fungus that is fed from eggs and young nematodes. It has a huge potential to replace highly toxic chemical pesticides,” explained Castro.
"With the acquisition, the Vittia group now has four companies in the sector — Biovalens, Biosoja, Samaritá and Granorte — which will ensure its organic growth; such acquisitions generate synergy,” affirmed the executive.
“Besides the opportunity, an acquisition necessarily passes through market capitalization, and it will be a challenge to support it financially with an annual growth of 20 percent for the group,” he added.
Castro, however, said the group did not resort to market capitalization to acquire Biovalens. It was a deal that was done using the company's own resources, and yet, old stockholders of the company from Minas Gerais participated in the acquisition. “We will not take money from the financial market to foster the growth,” he maintained.
In 2017, without accounting for Biovalens, the Vittia group expects to bill R$412 million, against R$345 million last year, and R$290 million in 2015. “In order to support this growth, the stockholders will need to get results to reinvest in the company,” he remarked.
Founded in 1971, the conglomerate initiated an expansion by the end of the 1990s, having an organic growth until 2014, when it received a contribution from the investment fund of Brasil Sustentabilidade with the participation of the National Economic and Social Development Bank (BNDES) and the Fund of Caixa Social Security (Previ). The investment fund contributed to 29.5 percent shares of the Vittia group since then.
With six factories, the group is among the three largest foliar fertilizers makers in Brazil, accounting for 25 percent of the market of inoculants in the country. Through the acquisition, the expectation is that in 2020, the area of biological pesticides with products for the control of plagues and diseases, and inoculants, will represent 25 percent of the revenues of the Vittia group, estimated at R$800 million.
Source: AgroNews
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