KKR invests $300 million in UPL subsidiary Advanta for a 13.33% stake

• The Access to Seeds Index 2021 ranks Advanta as 4th in Africa and 2nd in South and Southeast Asia.
  
• Advanta focuses on sustainable agriculture, providing farmers with locally adapted quality hybrid seeds.
  
• Upon completion of the transaction, Advanta will operate as a standalone platform.
  

Private equity firm KKR will invest $300 million for a 13.33% stake in Advanta Enterprises, a subsidiary of UPL – a global agriculture solutions provider, the companies said on Friday.

Upon completion of the transaction, seed company Advanta will operate as a standalone platform; and aims to become a global sustainability leader in seeds.

“We are pleased to invest in Advanta, a global leader in sustainable agriculture, at a time when food security has grown in importance amidst geopolitical tensions and climate change. Advanta has built a diversified platform with differentiated products and an excellent track record,” Gaurav Trehan, Partner and CEO of KKR India, said.

The investment comes at a time when food production is facing structural challenges due to geopolitical disruption, rising population, reduction of arable land, declining productivity and climate change.

Advanta focuses on sustainable agriculture, providing farmers with locally adapted quality hybrid seeds. It has presence in 84 countries across Asia, Australia, Europe, United States and Latin America, and Africa.

“Today, Advanta is a leading player in sustainable agriculture solutions, benefitting the livelihoods of farmers globally. As sustainable farming practices increase in priority around the world, Advanta is well poised for its next leg of robust growth,” Jai Shroff, group CEO of UPL, said.

The Access to Seeds Index 2021, which measures the efforts of seed companies to boost productivity of smallholder farmers, ranks Advanta as 4th in Africa and 2nd in South and Southeast Asia.

KKR will make its investment from its global Impact strategy, which invests in businesses delivering solutions to address critical global challenges, and contributing towards the UN Sustainable Development Goals.

As of December 31, 2021, KKR has committed over $25 billion in equity globally to climate and environmental sustainability investments, the statement said.

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