Seeds provider Advanta hits $2.25bn valuation thanks to KKR investment

KKR has agreed to buy into seeds provider Advanta Enterprises in a deal which values the business at about $2.25bn.

The private equity giant will invest $300m for a 13.33% stake in Advanta, a subsidiary of global agricultural services major UPL.

Advanta provides farmers with locally adapted high-performing hybrid seeds, and boasts a portfolio of over 900 hybrids across more than 40 crops including corn, forages, grain sorghum, sunflower, canola, rice and vegetables.

KKR is making the deal through its Global Impact Fund, its debut impact investment vehicle closed on $1.3bn in 2020, which is a bet on the climate change fight and sustainable development as sources of potential profit.

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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 management expertise to strengthen its business, implement industry best practices, and achieve its next phase of growth.”

Advanta will operate as a standalone platform once the transaction is completed.

Source: Alt Assets

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