Private Equity in Ag Biologicals: Looking at Rovensa

Index:

1. Introduction

2. What does Consolidation Look Like?

3. Rovensa

4. Bridgepoint and Private Equity

5. Final Thoughts

Introduction

This week, the Mixing Bowl and AgList announced a collaboration to bring the Biostimulant Market Map to life. Users can now explore the Biostimulant Market map dynamically with the ability to click on company logos to discover more. For companies verified on AgList, users can find direct access to product information, case studies, and more.

To announce the initiative, Rob Trice, Chris Taylor along with Tim and Tyler Nuss discussed the initiative, and the market segment on The Modern Acre podcast: Unpacking the AgTech & Biological Trends of the Past Decade 

What does Consolidation Look Like?

On the podcast they talk about roll-ups, which I thought we would have witnessed more of, sooner in ag-biologicals. With only so many incumbent acquirers, and only so many private equity groups out there willing to overlook high multiples over the ~2018-2023 time frame, there hasn’t been a large effort in this segment, yet.

In order for a biological company to be successful at scale, I think they need a host of things — which can be difficult to find in one company, at least initially, which is where targeted acquisitions can make sense to fill portfolio gaps, gain market access or have more access to capital:

Rovensa

One company that has done this, that is quieter in North America, but large in totality is Rovensa.

Rovensa has positioned itself as a leading independent bio-based platform through a series of acquisitions across biocontrol, biostimulants, and specialty nutrition.

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