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KKR to invest $300 million in Advanta Enterprises for 13.33 per cent stake

The global investment firm joins UPL as an investor in the farming solutions start-up Tags: KKR, UPL, Jai Shroff, Advanta, agritech

KKR to invest $300 million in Advanta Enterprises for 13.33 per cent stake

Outlook Start-Up Desk

POSTED ON October 23, 2022 2:46 PM

Global investment firm KKR and UPL Limited, a global agriculture solutions provider, announced the signing of definitive agreements. KKR will invest $300 million for a 13.33 per cent stake in Advanta Enterprises Limited, a subsidiary of UPL and a global seed company that aims to deliver innovative farming solutions and technology to farmers worldwide.

Upon completion of the transaction, Advanta will operate as a standalone platform to become a global sustainability leader in seeds. KKR looks to collaborate closely with Advanta to expand its business further regionally and globally. This includes bolt-on acquisitions and maximising the company’s growth potential by leveraging its expertise and experience in strategic carve-outs, the agricultural sector and environmental, social, and governance best practices. 

As of December 31, 2021, KKR has committed over $25 billion in equity globally to climate and environmental sustainability investments.

Advanta is focused on sustainable agriculture, providing farmers with locally adapted high-performing and quality hybrid seeds developed through decades of research and advanced technologies in traditional plant breeding seeds. Today, it has a presence in 84 countries across Asia, Australia, Europe, United States, Latin America, and Africa. 

KKR will make its investment from its Global Impact strategy, which invests in businesses delivering solutions to address critical global challenges and contributing towards the United Nations Sustainable Development Goals. Food production faces structural challenges due to geopolitical disruption, rising population, reduction of arable land, declining productivity and climate change. 

Advanta’s business enhances smallholder farmer productivity and income through its agriculture solutions and technology, enabling higher yields and providing benefits including herbicide resistance and disease tolerance. The Access to Seeds Index, which measures the efforts of seed companies to boost productivity of smallholder farmers, ranks Advanta as 4th in Africa and 2nd in South and Southeast Asia.

Jai Shroff, the group chief executive officer (CEO) of UPL, said, “Since the acquisition of Advanta in 2006, UPL has built Advanta into a leading global seed company with a presence in more than 80 countries. As sustainable farming practices increase in priority worldwide,

Advanta is well poised for its next leg of robust growth. We are working closely with KKR to build on Advanta’s strong platform to deliver continued success in this next phase of evolution.”

Gaurav Trehan, partner and CEO of KKR India, added, “We are pleased to invest in Advanta, a global leader in sustainable agriculture, at a time when food security has grown in importance amidst geopolitical tensions and climate change. Advanta has built a diversified platform with differentiated products and an excellent track record, and we are excited to leverage KKR’s global network, operational and environmental, social and governance management expertise to strengthen its business, implement industry best practices, and achieve its next phase of growth.”

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