Sustainable food chain-focused private equity firm Paine Schwartz Partners (PSP) has invested $150m into AgroFresh Solutions.
Part of the funds will be used to repay a portion of AgroFresh’s existing debt.
On a pre-forma basis for the 12 months ending March 31 2020, AgroFresh’s net debt-to-adjusted EBITDA ratio will decline from 5.8x to 3.8x.
AgroFresh aims to improve the quality and extend the shelf life of fresh produce. It achieves this by leveraging science-based solutions, data-driven technologies and experience.
PSP’s $150m convertible stock initially represents around 36% of AgroFresh’s pro-forma common shares outstanding. Furthermore, its stake holds a 16% dividend with a minimum 8% payable in cash.
Evercore served as the sole financial advisor to PSP, while Kirkland & Ellis acted as its legal advisor.
The investment will help the company move closer to optimising its capital structure and deleveraging its balance sheet, the company’s CFO Graham Miao stated.
AgroFresh CEO Jordi Ferre said, “Today’s announcement is an important milestone for AgroFresh. Our refinanced capital structure will be more appropriately balanced for our business and will allow greater flexibility to drive our diversification initiatives and put the Company in a position to achieve its next chapter of growth.
“Furthermore, Paine Schwartz brings deep domain expertise within the agriculture sector, which we believe will complement our leadership team and Board composition. We are excited to welcome them to our team and look forward to their future contributions.”
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