In an effort to increase its sustainable farming line, Syngenta has acquired the biologicals company Valagro. The purchase of the Atessa, Italy company — whose slogan “Where science meets nature,” is a continued effort by Syngenta to gain a larger foothold in the sustainable practices field.
“This acquisition underlines our growth ambitions in this area and positions us as one of the strongest players in the global biologicals market,” said Erik Fyrwald, CEO of Syngenta Group. “The investment also forms part of our $2 billion commitment to help farmers address the effects of climate change and improve agricultural sustainability as part of our Good Growth Plan.”
According to Sygenta’s website, some of the environmental progress it is working toward includes a partnership with The Nature Conservancy to improve soil health, resource efficiency and habitat protection in major agricultural regions worldwide. They are also working toward a pledge to decrease their carbon footprint in half by 2030.
“Significant levels of investment in innovations such as Biologicals are necessary in order to deliver a sustainable future and help farmers deliver a food system working in harmony with nature,” said Jon Parr, President Global Crop Protection at Syngenta. “By fostering the entrepreneurial spirit and culture of Valagro, powered by our global scale and capability, together we will shape the future of the agricultural Biologicals market.”
The Syngenta Group entered into partnership with the 40-year-old Valagro in 2017 to supply its biostimulants. The purchase of the company is also part of an effort to boost it’s footprint in a time of an increasing biological market. According to Markets and Markets research, the global agricultural biologicals market size was estimated to account for a value of $8.8 billion last year and is projected to grow at a compound annual growth rate (CAGR) of 13.6% to reach a value of $18.9 billion within the next five years. Valagrio had an approximate 10% CAGR from 2009-2019 and had an approximate revenue of $175 million in 2019.
In 2019, Syngenta had $13.6 billion in sales across the globe with $10.6 billion coming from its Crop Protection division and north of $3 billion coming from seed sales.
“Most of our product is used on fruit and vegetables, with about 70% of our sales there,” said Giuseppe Natale, CEO of Valagro in an interview with AgWeb. “The real growth opportunity that we see is having adoption on row crop. The synergy and experience of Syngenta will be fundamental to speed up this process.”
Aside from its primary Italian campus, Valagro also has a plant in Brazil, two in Norway, two in India with another one on the way in the United States. The company is still expected to operate under its current brand.
Syngenta Group, contains four business units –Syngenta Crop Protection headquartered in Switzerland, Syngenta Seeds headquartered in the United States, ADAMA headquartered in Israel and Syngenta Group China.
No specifics of the financials of the acquisition have been released.