Private equity fund Fortissimo Capital is becoming a partner in privately held Origene Seeds with a NIS 40 million investment. The deal includes the acquisition of half of Origene's shares, currently owned by Origene cofounder Dov Godinger, and a cash injection into the company for the purpose of accelerating its growth. Following the deal, Fortissimo will become an equal partner in the company with Eyal Vardi, Origene's other cofounder.
It is believed that Fortissimo will inject additional capital into the company to facilitate its organic growth, as well as mergers and acquisitions. As far as is known, Origene has tripled its revenue over the past five years. It currently amount to $10 million a year, 60% of which is from the US market, with the rest coming from South America and other countries. Following the entry of Fortissimo, the company plans to penetrate European and other new markets.
Origene Seeds was founded in 2004. It is an innovative international company specializing in research, nurturing, production, marketing, and the sale of vegetable seeds. The company sells over 90 different strains from eight different plant families, with a focus on the gourd family (watermelon, melon, cucumber, zucchini squash, and pumpkins). Its strategy is to nurture new hybrid strains with improved genetic features of quality, taste, aroma, uniformity, high nutritional values, and a longer shelf life, combined with large and environmentally friendly crops. The company's experience and know-how enable it to adapt its hybrid strains exceptionally quickly to consumer demand, while taking into consideration the growers, field conditions, and weather.
Fortissimo is one of Israel's most prominent private equity funds. Since its founding a decade ago, the fund has raised hundreds of millions of dollars. Fortissimo invests in mature companies that have reached a turning point, so that a change in management and a capital injection can accelerate their growth. Fortissimo mostly emphasizes technological and industrial companies in which it has detected significant upside potential. Fortissimo's founder and managing partner is Yuval Cohen.
Most of Fortissimo's investors are local investment institutions, but foreign institutions have also begun expressing interest in the fund in recent years. In recent months, Fortissimo has finished raising $470 million for its fourth fund, and has now raised a total of $1 billion for its four funds. The fund made headlines this week with its petition for liquidation of Israel 18, a company at the top of a pyramid through which Israeli-Ukrainian businessman Gregory Gurtovoy controls public companies BGI Investments (1961) Ltd. (TASE: BGI), BSD Crown (formerly Emblaze), and food company G. Willi-Food Investments Ltd. (TASE:WLFD). The court refused the petition.
Published by Globes [online], Israel business news - www.globes-online.com - on October 22, 2015
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