"The horticulture sector is on the brink of a new wave of consolidation."
That's according to Frank de Hek from Oaklins, a company involved in many transactions across the horticultural sector. The first wave of acquisitions took place in plant breeding, followed by companies in plant nutrition and greenhouse construction. The Covid crisis briefly slowed things down, but Frank predicts in his conversation with M&A that a new wave is on its way, driven by ongoing consolidation and the growing trend of automation and robotics (link in Dutch).
Earlier this spring, the Topsector Horticulture & Starting Materials invited the industry to a meeting focused on this very topic. The big question of the day was: is the rise of private equity in horticulture a curse or a blessing? After an afternoon filled with presentations and discussions, the general conclusion was optimistic. Most agreed that private equity brings plenty of opportunities and, for a sector that's rapidly evolving, it's becoming almost essential.
As horticulture scales up and growers move toward high-tech production systems, the need for capital (both for growers and suppliers) is increasing. Private equity can help fill that gap, even though things don't always go perfectly smoothly.
For more information:
Frank de Hek
Oaklins
[email protected]
www.oaklins.com
