AM FRESH Group to acquire IFG and merge it with SNFL

AM FRESH Group and Special New Fruit Licensing have announced a definitive agreement under which AM FRESH is acquiring International Fruit Genetics and merging it with SNFL.

The move creates a combined company that significantly advances SNFL’s and IFG’s abilities to further develop their breeding capacities and add to their innovative portfolio, according to a news release.

AM FRESH will be the controlling shareholder of the combined entity, with significant minority investment from investment organization EQT Future and continued investment from private equity firm Paine Schwartz Partners, the release said.

The combined company will speed varietal breeding, development and commercialization, and that will benefit licensed growers, partners and consumers with increased and improved varietal options, according to the release.

“We are committed to delivering fresh, natural and healthy goods to excite consumers, and we strive to create the next frontier of sustainable fresh foods for the benefit of all,” Alvaro Muñoz, AM FRESH Group CEO, said in the release. “Together with IFG, we will spearhead varietal innovation and deliver a comprehensive portfolio of innovative varieties, which are nature- and health-positive, benefiting growers, our retail partners and consumers. Through our combined [research and development], innovation, agri-tech capabilities and high-quality standards, we are able to offer fresh propositions to our partners and together propel the table grape industry to the next level.” 

IFG CEO Andy Higgins said in the release that the transaction represents a huge advancement for the entire industry.

“Since our establishment, IFG’s mission, our challenge and our inspiration has been to grow our fruit categories, and this merger is another example of this” Higgins said in the release. “SNFL and IFG have complementary gene pools and breeding teams focused on different development pathways. While much of IFG’s focus has been on consumer traits and flavor, SNFL’s focus has been centered on health benefits, diseases tolerance and other important grower traits. Together, AM FRESH Group, SNFL and IFG will provide more variety choices to consumers, more industry solutions for growers and an accelerated pace of innovation for the fruit-breeding industry. This acquisition will bring forward the best that our companies have to offer as we build a dynamic foundation for the future.” 

Retailers and consumers will equally benefit through the sophistication and development of the table grape category, according to the release. SNFL’s and IFG’s combined efforts strive to increase the offer and possibilities of breeding differentiation. 

“By combining two breeding teams with profound and very diverse experience in different fields of plant genetics, we will seek to propel varieties which will be a better fit for the future and will fast-track the development of more sustainable and healthier varieties aligned with the market trends,” Josep Estiarte, managing director of the SNFL Group, said in the release. “In addition, the integration of two different pools of talent developed over more than 15 years enables the implementation of best practices into the plant varietal development process.” 

Kevin Schwartz, CEO of Paine Schwartz, also praised the move. 

“AM FRESH has made substantial progress expanding SNFL’s capabilities and offerings since our initial investment in 2019. This transaction is an important next step in the company’s evolution,” he said in the release. “We continue to believe in the significant value-creation opportunities that innovators like SNFL and IFG bring to the specialty produce sector. We are confident that the combined SNFL and IFG platform will have the necessary resources to deliver sustainable and healthier offerings that benefit growers, retailers and consumers alike. Looking ahead, we are excited to support the next generation of varietal innovation in grapes and cherries under AM FRESH’s leadership.” 

The release said EQT Future invests in companies that are transforming industries, and both SNFL and IFG are closely aligned with EQT Future’s “Planet” objective: to safeguard resources and climate by improving agricultural productivity and minimizing the use of fungicides in grape production. EQT Future also plans to support investments in “digitalization and innovative breeding technologies, and support both companies’ combined and continued pursuit of [research and development] excellence,” according to the release.

The transaction remains subject to regulatory approvals and customary closing conditions. Financial terms of the transaction were not disclosed. 

Morrison & Foerster LLP was the lead legal counsel for SNFL, while Allen & Overy and Simpson Thacher & Bartlett LLP were counsel for EQT Future, with Pérez-Llorca and Bank of America advising AM FRESH, the release said. Credit Suisse served as financial advisor and Dentons US LLP served as legal advisor to IFG in relation to the transaction.