MOROCCO – African Development Partners II (ADP II), a fund advised by Development Partners International (DPI), and AfricInvest, have announced the completion of merger between Compagnie Marocaine de Goutte à Goutte et de Pompage’s (CMGP) and Comptoir Agricole du Souss (CAS), creating a new champion in Moroccan and African agriculture, 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.
CMGP is a leading provider of irrigation solutions and water infrastructure headquartered in Morocco, with operations across Morocco and West Africa.
Meanwhile, CAS is one of the major players in the agri-supply sector in Morocco, operating in three segments: irrigation, crop protection, and seeds and fertilisers.
The merging of the entities represents an opportunity to create a unique end to end, one-stop shop market leader for farmers in the region, uniquely positioned to deliver sustainable long-term growth.
“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.”Jacques Alléon – CEO of CAS
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.
The new organization will also deliver significant positive social impact through improving farmers’ incomes and quality of life, helping solve significant water scarcity issues, and improving agricultural sustainability and food security.
Youssef Moamah, Founder and CEO of CMGP, said, “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.”
Agriculture is a critical industry in Morocco, employing 40% of the workforce, and accounting for 14% of GDP.
Leveraging a combined 100 years’ experience in the sector with a focus on innovation, the new business, with combined sales of MAD 1.7 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.
Jacques Alléon, CEO of CAS, said, “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.”
CMGP and ADP II were advised by Derenia Capital, Smyle Finance, PwC and Allen & Overy, while, CAS was advised by BMCE Capital Conseil and Norton Rose Fullbright. AfricInvest was advised by DLA Piper.
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