KKR, a global investment firm, and UPL Limited, a global agriculture solutions provider, on Friday announced the signing of definitive agreements under which KKR will invest $300 million for a 13.33 percent stake in Advanta Enterprises Limited, 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 said in a statement that it 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, North 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,” the company added.
KKR added that it 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. “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,” it said.
The Access to Seeds Index, which measures the efforts of seed companies to boost the productivity of smallholder farmers, ranks Advanta as fourth in Africa and second in South and Southeast Asia.
Upon completion of the transaction, Advanta said that it 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.