Global AgInvesting | 2 July 2024

IDeA Agro, managed by DeA Capital Alternative Funds SGR and the first private equity fund in Italy to focus on agribusiness and farmland, has completed its investment cycle with its tenth investment – the acquisition of a majority stake in S.P.O. Zentrum, the Sicily-based leading platform in Italy for the production, packaging, and distribution of fresh fruits and vegetables with a concentration on citrus fruits. 

The framework of this deal entails IDeA Agro’s direct investment in Agrimediterranea, the agricultural holding company that controls the farming operations and the S.P.O. Zentrum distribution platform with the goal of advancing its development with the implementation of sustainable and innovative agricultural concepts. 

“IDeA Agro’s agricultural investment portfolio is to-date unique in the European landscape both in terms of crop and geographical diversification within Italy,” said Pier Luigi Rossi, managing director, IDeA Agro Fund. 

“Therefore, in our search for agriculture excellence we could not miss our presence in the citrus fruit chain, which embodies the taste and tradition of Sicily, and we believe that the SPO Zentrum is the ideal platform to build a national market leader.” 

Managing approximately 450 hectares in Sicily, of which 180 hectares are directly managed, the group has achieved annual production of 25,000 tons with consolidated sales to-date of more than €20 million (US$21.5 million) and an average annual growth rate of approximately 10 percent over the past five years.

Being known for its vertically integrated business model covering the entire food chain from the production of raw materials to processing and marketing of finished products, the group’s products are processed through a logistics platform consisting of pre-calibration warehouses in Sicily and processing and distribution centers in central Italy capable of ensuring same-day delivery throughout the country. 

From an ESG perspective, IDeA Agro explained that this deal not only promotes environmental sustainability through innovative growing practices, but also supports social development in Sicily. 

The adoption of strict ESG criteria will foster the growth of local communities and related businesses while ensuring the continuous improvement of working conditions. The focus on traceability and product quality also will strengthen consumer confidence and enhance the excellence of Sicilian fruit and vegetables on the national market.

This integrated approach is a study in how sustainable investments can create shared value by combining economic performance with environmental and social benefits. 

“We are proud to collaborate with IDeA Agro,” said Giacomo Rizzo, CEO, SPO Zentrum Group. “I see this as a very promising partnership that will enable us to achieve leadership in the sector, with investments aimed at vastly expanding our production farms to create Italy’s largest integrated production and marketing platform.”

“We have always believed in an ‘AgriCultural’ system that encompasses not just the mere cultivation of the soil, but above all a service model focused on fully maximizing the value of our product. We are currently the only Sicilian production company, also IGP certified, with packaging and distribution facilities in central Italy, capable of delivering goods to the main commercial areas within a few hours.”

Moving forward, IDeA Agro plans to not only further professionalize and enhance the global agricultural supply chain, but also position the group as the leading integrated player in Sicily for the production and distribution of fresh fruit and vegetables through a significant investment program aimed at expanding the existing farm operations and reinforcing the logistics and commercial platform throughout the country. 

“I am delighted and enthusiastic to announce this new investment, which sees us working with the Rizzo family to develop the Sicilian citrus fruit chain,” said Rossi. “With this latest operation, the IdeA Agro Fund completes its investment cycle with 10 active deals, seven of which in agricultural greenfield space for over 1,200 hectares, confirming its position as the leading private equity fund specialized in agribusiness in Italy with an investment strategy focused on permanent crops, the most complex but also the most profitable, and on the construction of short and vertically integrated agricultural and agro-industrial supply chains.”

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Milan, 11th March 2024

IDeA Agro, in a strategic partnership with S.P.O. Zentrum S.r.l. and Jingold S.p.A., has launched a new agricultural greenfield project that envisages the creation of an avocado plant in Sicily, covering an area of approximately 100 hectares in the province of Siracusa.

Agro Avo, the new reality born from the partnership between the three highly synergic and complementary institutions, aims to become a key player in the production and marketing of Sicilian avocados in Italy within a few years.

S.P.O. Zentrum S.r.l., the local partner of the project, is a Sicilian company specialized in the production, packaging, and distribution of fruit and vegetables, with approximately 450 hectares in Sicily, pre-calibration warehouses in Sicily, and logistics and distribution centers in central Italy.

Jingold S.p.A., the commercial partner in the operation, is a global player in kiwi breeding and marketing. It has an extensive network of more than 800 farmers and collaborates with trading partners in South America, Asia, South Africa, and Southern Europe.

The idea of developing an avocado grove in Sicily is linked to the evident market opportunity that has seen a steadily rising consumption trend for several years, both nationally and internationally. From a production perspective, Sicily offers an ideal microclimate for avocado cultivation, allowing for the combination of product quality, high production yields and lower logistics costs with clear benefits in terms of sustainability.

Indeed, the project entails positive impacts from an ESG perspective, as it is structured with the adoption of efficient irrigation practices and sustainable agricultural methods aimed at conserving water resources and preserving soil through the use of state-of-the-art equipment. Simultaneously, the implementation of a short supply chain and the carbon absorption carried out by the trees will play a significant role in reducing atmospheric emissions, thus providing a dual environmental benefit. Furthermore, the plantation will be characterized by full traceability to ensure high product quality and significant support to the local economy through targeted investments with tangible social impact, aiming to create employment opportunities. Therefore, the investment offers an integrated framework to address environmental, social, and economic challenges, by promoting the development and adoption of sustainable agricultural practices, crucial for preserving natural resources and the enhancement of Sicily.