Specialty crop input producer Verdesian Life Sciences, Cary, N.C., said on Jan. 19 it has entered into a definitive stock purchase agreement with funds managed by AEA Investors LP, New York City. Verdesian’s management team, including President and CEO Kenny Avery, will continue to lead the company following the close of the transaction.
Terms were not announced. Private equity firm Paine Schwartz Partners, New York City, which formed Verdesian in 2012, was reported in negotiations to sell its stake in Verdesian this past November (GM Nov. 13, 2020). At the time, Verdesian was valued at over $500 million.
“AEA is the right partner to help us continue scaling Verdesian and doing what we do better than anyone else: offering Nutrient Use Efficiency technologies for growers all over the world,” said Avery. “With AEA, we are gaining a global partner who recognizes the potential of our products and will support our growth, both organically and through strategic investments, in North America and around the world.
“We are proud of what we have accomplished since our founding and have had a very successful partnership with Paine Schwartz,” he continued. “Looking ahead, we are excited to work with AEA as we continue to provide critical products to farmers that increase their productivity, profitability, and ability to do so sustainably.”
“We believe Verdesian’s leading product suite, R&D capabilities, entrepreneurial and customer-focused culture, and industry leading management team truly differentiate the Company from its peers and create a strong platform from which to grow and expand,” said Rahul Goyal, Partner, AEA.
“The company has considerable opportunities ahead as the need for greater productivity and more sustainable farming practices drives global demand for Verdesian’s Nutrient Use Efficiency solutions. We look forward to partnering with Kenny and the entire Verdesian team to help the company take the next steps in building on its portfolio of plant health and nutrition products, both organically and through strategic acquisitions around the world,” Goyal added.
“Our success with Verdesian, from creating the platform to building it into an important market-leader, is another validation of our thesis driven approach to investing in agribusiness,” said Kevin Schwartz, Paine Schwartz CEO. “We identified plant health and nutrition as important aspects of the agribusiness value chain and as areas that align closely with our sustainability strategy in the sector.
“We were able to help Verdesian capture opportunities through key strategic acquisitions and substantial investments across the platform. AEA Investors will be a great partner for the company, and we are confident that Verdesian will continue to thrive and create enormous benefits for farmers and the environment in the years ahead,” Schwartz said.
Paine Schwartz formed Verdesian to invest in plant health and nutrition. Within the fertilizer space, over the years it acquired Northwest Agricultural Products LLC (GM March 8, 2013); INTX Microbial LLC, Specialty Fertilizer Products LLC (GM July 7, 2014); Biagro Western Sales Inc. (GM Sept. 17, 2012); QC Corp. (GM Oct. 6, 2014); and U.K.-based Plant Syence Ltd.
The company has expanded geographically into new markets, including South America, and has over 240 employees.
Verdesian manufactures seed treatments, inoculants, and fertilizer enhancers with facilities in Pasco, Wash., Kentland, Ind., Cape Girardeau, Mo., and North Lima, Ohio. It said its portfolio includes more than 300 patent proprietary technologies developed in partnership with global research institutions and universities.
Founded in 1968, AEA manages funds that have over $15 billion of invested and committed capital, including the leveraged buyouts of middle market companies and small business companies and mezzanine and senior debt investments. AEA invests across three sectors: value-added industrials, consumer, and services.
In the meantime, a lawsuit alleging fraud against Paine Schwartz and Verdesian’s Board of Managers continues in a Delaware court, where two minority equity holders – David Bergevin and MKE Holdings Ltd. – allege that the defendants over-inflated the value of Verdesian acquisition SFP, Leawood, Kan. (GM July 7, 2014), in order to get them to help fund the deal (GM Feb. 7, 2020).