M&G’s Catalyst invests EUR75 million into Biobest

M&G Investments has made a EUR 75 million investment into Biobest – a global leader  in pollination and integrated biological pest and disease control, whose mission is to promote sustainable production of high-value crops through biological crop protection and pollination. Acting as a ‘one-stop-shop’ to  more than 13,000 clients in over 70 countries, Biobest creates tailored biological stimulants and pest control  solutions which support strict environmental and regulatory requirements. 

The $70 billion global pest-control market is growing at a rate of 3% per annum of which, biological control products  make up $10-12 billion. This part of the market, which is specific to Biobest, is growing at a healthy 11% per annum to 2030. Traditional chemical pesticides are associated with well-known issues, including environmental damage,  pest resistance and health issues, which is driving demand for Biobest's products. In readiness for the inevitable market shift, chemical companies are funding pesticide and bio-fertiliser programmes, which also provides an  additional opportunity for Biobest to position itself as a key distributor.  

M&G’s £5 billion purpose-led flexible private assets strategy, Catalyst, has made the investment as part of its  ambition to invest in companies that qualify a transition to positive and regenerative practices, as is the case with  Biobest’s offering. The capital will fund Biobest’s acquisition of Biotrop - a Brazilian biological solutions specialist in open field crop nutrition and protection. The acquisition will position Biobest as a major player in South America,  expanding its range of biological solutions and complementing its existing portfolio. Niranjan Sirdeshpande of M&G  Catalyst will join on the board of Biobest as a Non-Executive Director.  

“It is now more important than  ever to accelerate the transition to sustainable solutions in agriculture. This investment to support Biobest’s  transformative acquisition demonstrates Catalyst’s ability to fund innovation that helps to solve the world’s biggest  environmental and social obstacles, and further reasserts Biobest’s position as a global leader in sustainable  agriculture. This exciting venture encapsulates our strategy of investing where it counts by seeking to deliver long  term financial returns and an overall positive impact to the environment and society.” 

Niranjan Sirdeshpande Global Head of Investments - M&G Catalyst

“This is a landmark transaction for  Biobest, building further on a successful M&A strategy in addition to healthy organic growth. Clearly aligning with  M&G’s Catalyst strategy, this milestone investment allows for Biobest to expand in this fast-developing domain,  driving sustainability and profits.“

 Jean-Marc Vandoorne, CEO of Biobest

Catalyst is M&G’s £5 billion purpose-led flexible private assets strategy, which invests in innovative solutions to  some of the world’s biggest environmental and social challenges on behalf of the £129 billion Prudential With Profits Fund and its circa 5 million customers.