London, UK: ADM Capital Europe, the London-based private equity firm, is pleased to announce that the Cibus Fund (“Cibus”) has led a successful EUR 60m funding round for M2i Life Sciences (“M2i”), acquiring a minority stake in the European leader and one of the few global players in the pheromone market.
M2i produces pheromones to effectively, sustainably and economically replace chemical pesticides in agriculture, parks and gardens. Pheromones are naturally produced chemical substances released by animals, especially prevalent in insects, affecting the behaviour of other animals within the same species. Reproduced in laboratories using biomimicry, these pheromones can be applied to crops thereby controlling invasive insects and replacing conventional, often toxic, synthetic pesticides.
Leveraging its knowledge and experience of fine chemistry, M2i research, produce, formulate and distribute a large suite of pheromone products. These refined pheromones are known to biologically protect against the most common pests, for example, in specialised crops such as apple trees, vineyards, tomatoes, banana trees and in broad acre crops such as corn and cotton. M2i also manufactures specialist products for gardens, parks and forests, protecting box trees, palm trees and pine trees from invasive insects. The company currently sells more than 60 products across 25 countries.
This capital increase will enable M2i to strengthen its equity base and develop its growth strategy by broadening its product range and extending its international presence, confirming its position as the global leader in biocontrol.
The Cibus Fund embraces a unique agribusiness strategy, investing in sustainable companies positioned to disrupt traditional practices. M2i’s pheromones are highly targeted at specific pests and harmless to the existing biodiversity, thereby presenting a promising solution to the challenges of producing food in a more efficient and environmentally friendly way. With an annual market growth of 24% (source: IBMA France, July 2019), supported by strong societal expectations from consumers, producers and regulators alike, M2i is well-positioned to take advantage of these significant growth opportunities.
The funding round included Téthys Invest, Créadev and France 2i Fondation de France’s fund managed by RAISE Impact, as well as an existing investor, Eurazeo Growth.
Commenting, Robert Appleby, Co-founder and Joint Chief Investment Officer at ADM Capital said: “There are 70% fewer synthetic chemicals in the farmer’s tool box than there were 10 years ago. With increased regulation, especially in Europe, we are likely to have 70% less in three years’ time. Pheromones represent an effective substitution in a world drowning in chemicals. M2i has an excellent management team and a track record of innovation, making it one of the world’s category champions in this fast-growing sector. This investment reinforces our long-term commitment to the future of sustainable global agriculture”.
Alastair Cooper, Head of Venture Capital at the Cibus Fund, ADM Capital said: “Pheromone use as an alternative to traditional chemicals has large growth potential driven by market and regulatory forces. The plant protection market is currently USD 26bn of which pheromones will represent 30% by 2030 (source: IBMA France, July 2019). M2i’s competitive advantage resides demonstrably in its expertise, innovation and agility with an impressive team, good creative track record and robust efficacy of its products.”
Philippe Guerret, CEO of M2i Life Sciences, said: “We are extremely pleased to welcome such high calibre new partners into M2i’s investor base. This EUR 60m transaction, led by ADM Capital, is a key step in our development. We now have all the necessary tools to position ourselves as a world leader in the biological protection of plants and crops.”
ADM Capital Europe LLP
0203 155 1980
Nick Corrin/Justine Crestois
0207 457 2020
About ADM Capital
ADM Capital is a Hong Kong and London-based private credit and private equity fund manager and adviser. Founded in 1998, ADM Capital manages or advises USD 1.78bn across a range of funds with 38 people operating out of 4 international offices. ADM Capital has a long track record in Asia and Europe and expertise in private transactions accessed via its extensive proprietary network. ADM Capital recently launched the Cibus Fund, focussed on investing growth capital into next generation global food and agriculture opportunities.
For more information: www.admcap.com
About the Cibus Fund
The Cibus Fund focusses on mid-market investment opportunities in sustainable food companies, primarily across Europe, North America and Australasia. The Cibus Fund takes advantage of the significant investment opportunities presented by global demographic changes, shifting trade patterns and the inability of the world’s fastest growing economies to meet rapidly increasing regional demand for high-value foods, driven by burgeoning middle classes. The Cibus Fund targets companies with strong management teams that are active in one or more stages of high-value food chains and looks for companies that are established category champions with a demonstrable technological advantage. Investments are evaluated on their environmental sustainability as a key determinant of value creation.
In October 2018, The Cibus Fund was the first fund to be given ‘Guernsey Green Fund’ status by the Guernsey Financial Services Commission. The Guernsey Financial Services Commission launched the Guernsey Green Fund in July 2018 and it is only awarded to those funds which meet strict eligibility criteria designed to reassure investors that funds are invested in line with appropriate environmental standards.
For more information: www.cibusfund.com
About M2i Life Sciences
Founded in 2012, M2i is a French industrial group, expert in the design, formulation and production of complex molecules. Thanks to its facilities spread across France, including its research laboratory in Lacq, combined with its production plant based in Salin de Giraud and its manufacturing centre in Parnac, M2i has developed its own expertise in pheromones for the biological protection of crops and animal welfare. The company designs, manufactures and markets natural products capable of replacing traditional pesticides. In this capacity, it has received the 2015 Corporate & Environment Award from the French Ministry of Ecology and Sustainable Development, the 2015 Green Chemistry Award, the 2016 RMC SME Trophy and the 2017 European Business Award for Environment from the European Commission, as well as the Pierre Potier Prize for chemistry in favour of sustainable development, amongst others. In 2018, Les Echos and KPMG selected M2i amongst the top 120 rising stars of tomorrow’s French economy. future flagships of the French economy.
M2i employs 150 people, including more than a quarter in R&D, and holds 19 patent families protecting its technology and innovative product lines.
For more information: www.m2i-lifesciences.com