Stirling Square expands its portfolio with SAS Group's acquisition of Afrikelp

✦ Meridian Analysis

Stirling Square Capital Partners, the British middle‑market private‑equity fund, is backing its Spanish portfolio company Sustainable Agro Solutions (SAS Group) in a signed agreement to acquire a majority stake in South African bio‑stimulus producer Afrikelp. The deal, valued at an enterprise‑value estimate of €50‑100 million according to market sources, adds to SAS Group’s sixth acquisition in three years, following purchases of Biovert, Pavesa Agroscience, Aqua do Brasil, Codiagro and Ceres Biotics. The transaction is structured as a majority‑share purchase, with the Afrikelp management team reinvesting a significant portion of the proceeds, aligning interests. Stirling Square, which took a majority participation in SAS Group in 2021, continues to drive inorganic growth for the platform, while SAS Group will integrate Afrikelp’s exclusive Ecklonia maxima algae collection licence and patented cold‑micronisation technology to broaden its bio‑stimulants segment and deepen its presence in the United States and other countries. Afrikelp’s presence in 55 markets across North America, Europe, Africa and Latin America gives SAS Group a distribution network. Deal professionals will be watching for the purchase price and any leverage used to fund the transaction, as well as the identity of lenders and advisory firms involved. Confirmation of antitrust clearances, the timetable for integration of Afrikelp’s R&D and production assets, and the extent of the management‑team reinvestment will be material to assessing the ultimate value creation potential of the roll‑up.

The Meridian Weekly