The transaction marks Milan-based Ambienta’s first investment in the sustainable agriculture sector and its first investment in the Spanish market.
One of the largest and most experienced sustainability investors in Europe, managing around €4bn in assets including private equity, private credit, and public markets, Ambienta said the acquisition positions it to capitalise on the fast-growing global biosolutions market, valued at $21 billion and expanding rapidly due to regulatory shifts, consumer demand for sustainable farming.
A maturing market
Agronova is a global leader in biological crop solutions, offering over 800 products such as biostimulants and biocontrol agents that help reduce reliance on chemical fertilisers and pesticides, which addresses key environmental challenges in agriculture like soil erosion, biodiversity loss, and climate-related crop stresses.
It has extended its operations and commercial reach to key European markets and the Americas and can now leverage on five laboratories and six state of the art production facilities, strategically located in some of the largest agricultural regions.
Ambienta plans to leverage its expertise and network to drive Agronova’s growth through organic expansion and strategic acquisitions.
Raising environmental issues are putting pressure on crop yields, the asset manager noted, with rainfall in Spain decreasing by 8% annually since 2018 and heatwaves growing by 26%.
In parallel, regulators and consumers are promoting the substitution of chemical solutions by biological alternatives, with the goal of optimizing yields without contaminating and impoverishing soil and water. The EU’s Farm to Fork strategy aims to cut pesticide use by 50% by 2030.
Agriculture contributes to around 15% of global GHG emissions, Ambienta stressed, with excessive use of agrochemicals being responsible for acidification, soil erosion and loss of organic carbon, which in the long run reduce the potential for yields improvement and contribute to biodiversity loss.
Why Agronova represents a strategic asset
The market retains high barriers to entry, Ambienta noted, represented by specific R&D capabilities, complex registration processes and a sophisticated go-to-market which is well suited to smaller and agile players, contributing to retaining a high degree of fragmentation.
Thanks to its size, wide product portfolio and geographical reach, Agronova represents a strategic asset in the market, Ambienta said, and a solid starting point to promote a further expansion through both organic levers and strategic M&A.
Ambienta has been studying the market at length
“We are entering a sector which we have analysed and studied for a long time where we see strong sustainability driven opportunities for growth,” said Ambienta’s Mauro Roversi, founding partner and chief investment officer, private equity.
The deal also gives Ambienta an opportunity to expand its geographical reach this year by acquiring a “highly visible and sought-after asset in Spain”.
Agronova CEO Olivier Lavaud said the deal will allow the company to unlock its full potential.
“We share a strong commitment to supporting farmers in their transition toward more sustainable agricultural practices.”
