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Phatisa, through its Food Fund 3, together with a consortium of investors, have agreed to acquire Zaad.
Zaad is a South Africa-based investment holding company specialising in the agricultural inputs sector. Through its portfolio, Zaad operates across the agri-inputs value chain, including seed breeding, production and distribution of forage, field and vegetable seed, alongside crop protection solutions with operations spanning across the African continent.
The transaction comprises the acquisition of Zaad, alongside a capital injection to enable the latter to acquire a majority interest in East Africa Seeds Group. The executive management of Zaad will retain a meaningful stake in the business through a long-term incentive scheme aligned to growth and value creation.
Phatisa is investing alongside a consortium that includes the Public Investment Corporation (PIC), the Industrial Development Corporation (IDC) and Women Investment Portfolio Holdings (Wiphold). PIC is South Africa’s state asset manager, while the IDC is South Africa’s development finance institution. Wiphold is a South Africa-based investment company.
Imane El Alaoui-Grollemund, partner at Phatisa, commented: “Zaad is a compelling example of the type of business we seek to back through Food Fund 3: deeply embedded in the food value chain, commercially robust, and delivering solutions that materially improve agricultural productivity and resilience. We are proud to make Zaad the first investment of the fund.”
Antonie Jacobs, Zaad CEO, said: “With Phatisa’s support, we look forward to accelerating our growth across Africa, investing further in innovation and research, and expanding access to hybrid, climate and disease resilient varieties that support better outcomes for farmers and food systems alike.”
Completion of the transaction is subject to obtaining the requisite regulatory approvals and the fulfilment of the applicable conditions precedent.
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