Fruit genetics: Sun World acquired by Bridgepoint private equity group
02 Apr 2021 --- Global fruit genetics, R&D and licensing company, Sun World International, has agreed to be acquired by private equity group Bridgepoint. The transaction is expected to close in the second quarter of 2021, subject to customary conditions. Terms were not disclosed.
The international private equity group will become controlling shareholders alongside management and succeed in “a transformative and successful period of ownership from Renewable Resources Group LLC and Vision Ridge Partners.”
The Bridgepoint investment supports Sun World’s plans to accelerate its growth strategy by building a broad-based genetics and technology platform for specialty fruit growers.
“The Bridgepoint team understands and appreciates the extraordinary head start we enjoy in the sector after 30 years of breeding superior produce. And they share our vision of the many ways we can grow,” says CEO David Marguleas, who will serve on the company’s new board and hold an equity position in the company.
Sun World has started work in several under-served crops and technology solutions with strong global appeal. R&D in spotlight
“In partnering with Sun World, our ambition is for it to become a broader-based platform investment in fruit genetics with a considerable runway for long-term growth,” adds Andrew Sweet, a partner at Bridgepoint. He leads the firm’s investment activities across North America.
“Sun World was part of the first wave of genetic innovation for produce, establishing a recurring royalty business model that has enabled it to prioritize its R&D innovation. Today it enjoys a market-leading reputation with the largest growers, distribution partners and retailers globally thanks to its cutting-edge molecular techniques and breeding processes. We expect to continue to invest in new technologies that benefit growers and consumers alike,” Sweet concludes.
Besides enhancing its intellectual property portfolio and core grape and stone fruit breeding operation, Sun World has started work in several under-served crops and technology solutions with strong global appeal.
Fruit breeding expansion
The anticipated growth will be both organic and through investment and acquisition of new genetics and emerging technologies, all of which have the potential to add meaningful value for Sun World growers worldwide, notes the company.
Last year, Sun World opened its new Center for Innovation in California’s San Joaquin Valley to facilitate its expansion. The complex features a sophisticated fruit breeding and variety development operation, including specialized facilities for tissue culture and molecular breeding and a 160-acre experimental research farm.
Sun World currently holds more than 300 plant patents, and the company views the Center for Innovation as an important advantage in advancing its pipeline of fruit genetics.
Sun World divested its substantial farming, packing and marketing operation in 2019 to concentrate more fully on its breeding and licensing business.
Edited by Gaynor Selby
