Citri&Co acquires San Miguel’s fresh fruit business

  • Citri&Co will integrate San Miguel’s Peruvian and South African subsidiaries into the group and will exclusively commercialize the fresh fruit production of Argentina and Uruguay.

  • The transaction will boost company’s internationalization and provide Citri&Co a 12-month-a-year supply of quality fresh fruit.

  • San Miguel will focus on the development of industrial projects in the natural lemon ingredients business in South Africa, Argentina and Uruguay.

Citri&Co, one of the largest vertically integrated fruit groups and a Miura Partners portfolio company, has signed an agreement to acquire the fresh fruit business of San Miguel, a leading fruit production, distribution and natural ingredients company in the southern hemisphere. The agreement includes the integration of San Miguel’s subsidiaries in Peru and South Africa, as well as the exclusive commercialization of the fresh fruit production in Argentina and Uruguay. With this transaction, Citri&Co continues its international expansion in key geographies of the southern hemisphere which will boost growth in markets such as the United States, Middle East and Asia.

At the same time, Citri&Co becomes a 12-month-a-year supplier of quality citrus, due to the complementarity of the two hemispheres’ seasons. Additionally, thanks to this acquisition, Citri&Co broadens its portfolio with other high value-added fruits that are added to its offer of conventional and organic citrus, melon, watermelon and stone fruit.

The Peruvian subsidiary is an agricultural reference in the country, producing and distributing more than 50,000 tons of mandarins and other high value-added fruits on its 1,300 hectares of land. The South African subsidiary, on the other hand, is one of the leading companies in the citrus sector in the region, with more than 80,000 tons of citrus sold per year, more than 1,000 hectares owned and two packing plants. Exports of both companies exceed 90% of their sales.

The Peruvian and South African subsidiaries will continue to operate as normal, maintaining their management team and employees, with operations and supply programs continuing as usual.

Carlos Blanc, CEO at Citri&Co has expressed his satisfaction with the agreement. “With this operation we take a firm step towards becoming a fresh fruit supplier with a key and complementary presence in both hemispheres, while committing to domestic production, as we have been doing, staying true to our origin and values. We are exceptionally grateful to San Miguel’s good work and we receive its team and legacy with the utmost respect.”

According to Jordi Alegre, Managing Partner at Miura Partners, “The acquisition of San Miguel’s fresh fruit business is a unique opportunity for Citri&Co to offer to European clients high quality citrus throughout the 12 months of the year, whilst expanding its global foothold into the United States, Middle East and Asia.”

Grupo San Miguel will focus on the development of strategic projects based on natural ingredients in Argentina, Uruguay and South Africa, in order to reaffirm its position as the world’s leading processor of lemons. This transaction is part of a strategy to optimize San Miguel’s current capital structure and provide the financial viability it needs to meet its long-term strategy, which is focused on achieving more agile and accelerated growth.

“We are very excited to start this new chapter in San Miguel successful history by focusing our strategy on the development and growth of the Natural Ingredients business through new investment projects to continue supplying our customers around the world”, explained Pablo Pla, San Miguel CEO about the agreement.

The transaction is expected to be closed in the coming weeks and it is still subject to the usual conditions and formalities.

Citri&Co has been advised by EY in the financial, labor and tax areas, by McKinsey in the market research and by the law firms Garrigues in Spain, Bowmans Law in South Africa and Estudio Rodrigo in Peru.

About Citri&Co

Citri&Co is the leading vertically integrated fresh fruit group in Europe, offering conventional and organic citrus, melon, watermelon and stone fruit grown in fields across Spain and Brazil. The company commercializes >700k Tn of fresh fruit annually, across >30 countries and serving >200 clients under long-term partnership models.

In addition, Citri&Co is firmly committed to sustainable development through environmental protection, carbon emission reduction and the integration of sustainability into its value chain.

 About San Miguel

San Miguel is a leading company in the production and distribution of fresh fruits and natural ingredients derived from citrus, especially lemons, a segment in which accounts for the largest volumes worldwide.

About Miura Partners

Miura Partners is a leading middle-market private equity firm in Spain based in Barcelona with more than €1bn of Assets under Management.

The firm is specialized in investing in mid-size family-owned & entrepreneurial businesses, providing attractive growth and innovation plans, and with a clear focus on sustainability. Since 2008 Miura Partners has invested in more than 50 companies, with transactions in excess of €2bn value.