ADP II and AfricInvest complete CMGP and CAS merger
African Development Partners II (ADP II), a fund advised by Development Partners International (DPI), and AfricInvest, a longstanding pan-African alternative investment platform with local teams in more than 10 offices across Africa, Europe and the Middle East, have complete the merger of Compagnie Marocaine de Goutte à Goutte et de Pompage (CMGP) with Comptoir Agricole du Souss (CAS), creating a new leader in Moroccan and African agriculture, which will be known as CMGP-CAS.
The merger brings AfricInvest into the partnership alongside ADP II through an investment targeting the expansion of efficient irrigation and agricultural water management technologies to enable greater output and sustainability in agricultural production. Through its involvement, the AfricInvest team also aims to support the growth of CMGP-CAS’s partnerships across the African continent, mobilising its own network, especially in East and West Africa.
Agriculture is a critical industry in Morocco, employing 40 per cent of the workforce, and accounting for 14 per cent of GDP. Leveraging a combined 100 years’ experience in the sector with a focus on innovation, the new business, with combined sales of MAD1.7 billion, will work to pioneer solutions in irrigation, fertigation, crop protection and solar energy to combat key challenges in Africa such as water scarcity and food security. CMGP and CAS also bring a complimentary focus in terms of product range and distribution channels, that will enable the combined business to become a world-class partner to farmers across the region, creating a one-stop-shop in the Moroccan and African agricultural sector.
Youssef Moamah, Founder and CEO of CMGP, says: “This is an historic day for our two companies. Together we are a clear Moroccan leader in irrigation, agricultural supplies, solar energy, and water infrastructure. We’ve been working closely to define in detail our strategy and operational model and great progress has already been made in executing the merger”.
Jacques Alléon, CEO of CAS, says, “This is a day of celebration and pride for us all. The interactions between our teams have confirmed to us that our businesses share the same values of excellence, integrity, and care for our people. This merger will accelerate the growth of our businesses and allow us to become a partner and employer of reference for Morocco and the continent”.
Sofiane Lahmar, Partner at DPI, says: “We are thrilled that CMGP has achieved this key milestone and look forward to continuing to work with Youssef, Jacques, and the CMGP and CAS teams on implementing this new and exciting strategy. With the combination of CMGP and CAS, we have created a major player in the sector, that will focus on innovation to better serve our clients and improve farmers’ income and quality of life. Integration of the new business is underway, and we are confident that the close cultural fit and shared ambitions of the two companies will enable a smooth transition, and help accelerate the growth aspirations across the continent, with plans to reach all major West African markets by 2024.”
Brahim El Jai, Senior Partner at AfricInvest, adds: “AfricInvest is excited to be partnering with CMGP-CAS in the next stage of its development, accelerating best-in-class irrigation and fertilisation solutions for its partners to maximise food production with less water usage. Moreover, we are pleased and proud to help deliver on our impact promise through supporting the growth of irrigation solutions that improve living conditions, and through bringing infrastructure for water adduction and sanitation that enables access not previously in place.”
CMGP and ADP II were advised by Derenia Capital, Smyle Finance, PwC and Allen & Overy. CAS was advised by BMCE Capital Conseil and Norton Rose Fullbright. AfricInvest was advised by DLA Piper.