Sicit Group, a world leader in the development and production of next-generation biological products for agriculture, aimed at improving crop yields, harvest quality and naturally enhancing the shelf life of products, has completed the acquisition of a controlling stake (51%) in Patagonia Biotecnologia SpA, a fast-growing Chilean company, certified B Company, specialized in the production and distribution of seaweed-based biostimulants under the FERTUM® brand. This transaction allows Sicit Group (a pioneer in circular economy and controlled by NB Renaissance and Intesa Holding, the holding company of leather producers from the Arzignano district) to enter the attractive segment of plant-based biostimulants. The transaction has a strong strategic basis for Sicit and will allow the company to further strengthen its leading position in the production of natural biostimulants for the B2B market.
“The biostimulant market is growing at double-digit rates. By acquiring Patagonia Biotechnology,” says Massimo Neresini, CEO of Sicit Group, “we will be able to expand our portfolio to include plant-based products that will reach more than 80 countries where we are already present. Sicit is the world leader in the production of high-quality animal-based biostimulants and our goal is to expand into plant-based biostimulants as well.”
Our laboratories have carefully evaluated the excellent quality of the substances contained in Patagonia Biotechnology's algae extracts, extracted from the cold and pristine Patagonian Sea. Therefore, we open the door to a company with which we can undoubtedly achieve great results through the Sicit model: total control of the entire production process, from raw materials to the cutting-edge technological process, and the quality of our finished products.”
Patagonia Biotecnologia is headquartered in Puerto Montt, the capital of the Los Lagos region, between Valdivia and the Chiloé archipelago, at the gateway to Chilean Patagonia. The company's revenues have grown by around 40% over the past four years, reaching €5 million in 2022, €60 million of which were generated by exporting to North and South America. The seaweed is harvested from the waters of the Patagonian Sea, where the company has partnerships with artisanal fishermen for the sustainable extraction of the resource and concessions where it grows its own seaweed, which gives it an important competitive advantage in terms of raw material supply.
President David Hockley and CEO Rebeca Gálvez, as well as Inventor Marcelo Brintrup M. and Commercial Manager Claudio Fernández F., will continue to be involved in the management of the Patagonia Biotechnology business and the current management team will have the support of Sicit to accelerate technological growth and business development.
“We are delighted to be part of the Sicit Group, through which we will be able to give Patagonia Biotechnology a strong boost on a global scale thanks to the cutting-edge technology used in Italian research and development laboratories,” said Hockley.
“The addition of Sicit to Patagonia Biotechnology will accelerate our goal of scaling up the production and distribution of solutions that contribute to a more sustainable agriculture, capable of supplying food to the growing world population, but without compromising the health of the soil and the environment,” added Gálvez.
Rino Mastrotto, President of Sicit and main shareholder of Intesa Holding, which controls the Vicenza-based company together with NB Renaissance, commented: “I am delighted with the acquisition of Patagonia Biotecnologia, which further strengthens the international presence of Sicit, a company that I have wanted to grow and have seen grow tremendously over the years. I would like to thank all the people who made Sicit’s success possible through constant, forward-looking commitment and the relentless development of excellent products that support sustainable agriculture, which is today essential for the future of the planet.”
Sicit's choice of Patagonia Biotechnology involved a prior evaluation of different algae extracts from around the world, resulting in Patagonia Biotechnology being the best option due to the quality, opportunity and commitment of the Chilean company, certified as a B Company, with ESG standards, which aligns with those of SICIT and its shareholders.
Fabio Canè, Senior Partner at NB Renaissance, said: “Sicit was conceived with the vision of the Arzignano leather producers and the technological skills of Mr. Neresini, to create a useful solution for the processing of waste from the tanning district in the agricultural sector, creating a unique example in the world of the circular economy and demonstrating how a problem can be transformed into an extraordinary business opportunity. The company has grown significantly to become the world leader in animal-based biostimulants through the development of patented products and technologies. Also thanks to our entry in 2021, another important step has been taken today: entering the adjacent sector of plant-based biostimulants that significantly expands the business activity, leveraging the strong development capabilities of its own laboratories and on existing distribution channels.
This acquisition is just a first step towards an established presence in the vegetable segment and in other high-tech sectors such as microorganisms and in production in other sites around the world to meet the growing demand for biostimulants of animal origin.”
Sicit was assisted by Deloitte as legal, accounting and tax advisor. The shareholders of Patagonia Biotecnologia were assisted by PPU (www.ppulegal.com) as legal advisor and Endeavor (www.endeavor.cl) as a financial advisor and entrepreneurship scaling mentor.
