KKR joins UPL as an investor in Advanta

Date:10-24-2022

KKR, a leading global investment firm, and UPL Limited (″UPL″), a global agriculture solutions provider, announced the signing of definitive agreements under which KKR will invest US$300 million for a 13.33% stake in Advanta Enterprises Limited (″Advanta″ or ″the Company″), a subsidiary of UPL and a leading global seed company that aims to deliver innovative farming solutions and technology to farmers around the world.

Advanta is focused on sustainable agriculture, providing farmers with locally adapted high-performing and quality hybrid seeds, developed through decades of research and advanced technologies in traditional plant breeding seeds. Today, Advanta has a presence in 84 countries across Asia, Australia, Europe, United States and Latin America, and Africa. With a diversified portfolio of over 900 hybrids across more than 40 crops, Advanta is 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.

KKR will make its investment from its Global Impact strategy, which invests in businesses delivering solutions to address critical global challenges, and contributing towards the United Nations Sustainable Development Goals. Food production is facing structural challenges due to geopolitical disruption, rising population, reduction of arable land, declining productivity and climate change. Advanta’s business enhances smallholder farmer productivity and income through its agriculture solutions and technology, enabling higher yields and providing benefits including herbicide resistance, and disease tolerance. The Access to Seeds Index, which measures the efforts of seed companies to boost productivity of smallholder farmers, ranks Advanta as 4th in Africa and 2nd in South and Southeast Asia.1

Jai Shroff, Group CEO of UPL, said, ″Since the acquisition of Advanta in 2006, UPL has built Advanta into a leading global seed company with presence in more than 80 countries. Today, Advanta is a leading player in sustainable agriculture solutions, benefitting the livelihoods of farmers globally. As sustainable farming practices increases in priority 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.″

Gaurav Trehan, Partner and CEO of KKR India, said, ″We are pleased to invest in Advanta, a global leader in sustainable agriculture, at a time when food security has grown in importance amidst geopolitical tensions and climate change. 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 (environmental, social, and governance) management expertise to strengthen its business, implement industry best practices, and achieve its next phase of growth.″

Upon completion of the transaction, Advanta will operate as a standalone platform and aim to become a global sustainability leader in seeds. KKR looks to collaborate closely with Advanta to further expand its business regionally and globally, including through bolt-on acquisitions, and maximize the Company’s growth potential by leveraging KKR’s deep expertise and experience in strategic carve-outs, the agricultural sector and environmental, social, and governance best practices.

KKR’s investment is aligned with its responsible investment approach, which looks to support businesses contributing important solutions to critical societal challenges, including sustainable living. Building on more than 46 years of investment experience, KKR’s thoughtful ESG management across its portfolio over the past decade reinforces its strong conviction in the role responsible business plays in achieving favorable investment and sustainability outcomes. As of December 31, 2021, KKR has committed over US$25 billion in equity globally to climate and environmental sustainability investments.