Keyhaven Capital Partners announces exit from Agrupapulpi as Magnum Industrial Partners agrees sale
- Magnum has agreed the sale of Agrupapulpi to a US-based financial investor
- Keyhaven backed Magnum’s acquisition of Agrupapulpi in 2019
- The sale concludes a three-and-a-half-year hold in line with Keyhaven’s secondaries strategy
Keyhaven Capital Partners (“Keyhaven”), the specialist secondaries private equity firm dedicated to the European lower mid-market, today announces the successful exit from its investment in Agrupapulpi, a leading Spanish producer and exporter of fruit and vegetables, following Magnum Industrial Partners’ (“Magnum”) successful sale to a US-based financial investor. Keyhaven backed Magnum’s acquisition of Agrupapulpi in 2019 as part of its longstanding relationship with the sponsor, with the sale concluding a three-and-a-half-year hold in line with its secondaries strategy.
Agrupapulpi has substantial production facilities in south east Spain and offers a fully integrated operation from seedling to cultivation, harvesting, processing and delivery. Agrupapulpi’s key products are lettuce, watermelon, and broccoli, as well as citrus, melon and celery. During the three-and-a-half-year hold, Agrupapulpi significantly increased its production capacity, and completed transformational add-on acquisitions. In December 2021, the company completed the acquisition of Amaco, a leading vegetable producer, and in July 2022, the company completed the acquisition of Agrotomy, a market-leading broccoli producer. These acquisitions further strengthened Agrupapulpi’s market position as one of the leading suppliers of fruit and vegetables to large European retail chains.
As with all Keyhaven investments, ESG has been integral to Agrupapulpi’s value creation. A number of environmental and sustainability initiatives were implemented to reduce energy and water consumption in the production process, leading to the business being awarded various ESG accreditations.
The transaction closed in the second quarter of 2023 and represents a significant exit for Keyhaven.
Commenting on the sale, Claus Stenbaek, Managing Partner at Keyhaven said: “We are delighted by the successful exit of Agrupapulpi which is ahead of expectations. We backed Magnum Capital as part of our longstanding relationship with the sponsor, illustrating Keyhaven’s relationship driven sourcing approach to back niche industry leading businesses across the European lower mid-market and accelerate their growth. When we invested in 2019, Agrupapulpi already had a market leading position and strong brand reputation in Europe, and has since scaled its production capacity, distribution network and product portfolio to become a true market leader”.
Commenting on the sale, Enrique de Leyva, Founding Partner at Magnum said: “As always, we have had a fantastic collaboration with Keyhaven which has helped us create value in this investment and bring ESG initiatives to the forefront. We are looking forward to continue co-investing with Keyhaven in the future”.
About Keyhaven Capital
Keyhaven is a specialist secondaries private equity firm dedicated to the European lower mid-market. With a diverse team, a network embedded in local markets and a flexible approach to deal making, Keyhaven works with niche industry leaders to accelerate growth, building robust, sustainable businesses that deliver for their investors, employees and local communities.
Since its foundation in 2003, Keyhaven has invested or advised on in excess of €2 billion and made more than 60 secondaries investments in Europe.
About Magnum Industrial Partners
Magnum was founded in 2006 and is owned by the firm’s senior partners, all of whom hail from senior positions within some of Spain’s and Portugal’s largest corporations with a varied and complementary set of skills and experiences. Magnum’s strategy is to capitalise upon the relatively rich seam of opportunities in the Iberian middle market, with a particular focus on growing companies via international expansion.
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