Black River acquires 28% stake in AgriNurture

Black River Capital Partners Food Fund, a Singapore-based fund managed by the private equity arm of American agribusiness company Cargill, has acquired a 28% stake in AgriNurture, a Philippine-based supplier of fresh and processed agricultural food products, in a deal worth $30.45m.

Under the agreement, Black River will buy 125 million common shares in AgriNurture, which will use the new funds to acquire plantations and cold storage equipment.

The investment shares comprise 76 million common shares, bought by Black River through a regular or special block sale, and 49 million common shares, which will be subscribed by Black River out of the increase in the company’s authorised capital stock.

The deal was initially expected to be finalised by November 2011, but the companies later decided to extend the period to evaluate the transaction.

In a filing with the Philippine Stock Exchange, AgriNurture asked for a voluntary trading suspension of its shares from 29 December 2011 to 2 January 2012 in view of the Black River investment, and this suspension has been lifted today.

AgriNurture, a publicly listed fruit and vegetable grower, wholesaler and exporter, is currently investing $5m in the establishment of a plant in Camarines Sur, Philippines, to provide coconut juice to American beverage brand Vita Coco.

It plans to raise PHP1.5bn ($34m) to PHP2bn ($45.37) to fund its expansion plan, which includes an investment of between PHP200m ($4.53m) and PHP250m ($5.67m) to acquire three to four food chains by the first quarter of 2013.

In 2010, AgriNurture acquired a 51% stake in The Big Chill, a food and beverage manufacturer that owns brands such as Big Chill, Fresh Bar, C’Verde and Canefusion, for PHP20m ($0.45m).

Cargill, based in Minnesota, has five business units: agriculture services; food ingredients and applications; industrial, origination and processing; risk management; and finance.