GIC to buy ‘significant minority interest’ in Brazil’s Biotrop

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Singapore sovereign wealth fund GIC will acquire a “significant minority interest” in Brazil-based biological agricultural input maker Biotrop Solucoes Biologicas, a portfolio company of Aqua Capital’s Fund II, which will remain the majority owner, according to a press release filed by Aqua Capital Monday.

“Biotrop’s expansion plan throughout the Americas continues on track, consolidating its leadership position in Brazil, while strengthening its presence in other key markets like Argentina and Paraguay and preparing its entrance into other South American markets and the U.S. The incorporation of a well-connected, global investor such as a GIC is a key step towards accelerating this growth agenda,” said Tomás Romero, partner at Aqua Capital, in the statement.

Biotrop, founded by Aqua Capital in 2018, develops and produces sustainable products for agriculture; the 2018 acquisition of Total Biotecnologia led the company to post more than 35 percent increase a year in revenue and earnings before interest, taxes, depreciation and amortisation (ebitda), despite Brazil’s economic volatility and lockdown measures due to the pandemic, the release said.

The deal’s close is subject to Brazilian anti-trust authorities’ approval, which is expected to be received within 60 days, the statement said.

GIC, which manages Singapore’s foreign reserves, has around $453.2 billion under management, according to data from the Sovereign Wealth Fund Institute.

Aqua Capital has raised US$543.4 million across two funds, the South American Agro-business Fund II in 2017 and the Agribusiness & Food Fund in 2013, according to Crunchbase data.