MOROCCO – Development Partners International (DPI)’s backed Compagnie Marocaine de Goutte à Goutte et de Pompage (CMGP) has combined with Comptoir Agricole de Souss (CAS), creating a major new player in the African agricultural industry.
CMGP is a leading provider of irrigation solutions and water infrastructure headquartered in Morocco, with operations across Morocco and West Africa.
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.
“Today’s announcement is an important moment for our companies: CMGP and CAS, together, will be the leading player in Morocco with a unique model in irrigation, agro-inputs and water infrastructure.”Youssef Moamah -CEO, CMGP
The two companies with combined sales of MAD 1.6 billion (US$175.6m) have delivered strong growth over the past two decades.
The merging of the entities represents an opportunity to create a unique end to end, one-stop shop market leader for Moroccan and West African farmers, uniquely positioned to deliver sustainable long-term growth.
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, indicated DPI.
“Today’s announcement is an important moment for our companies: CMGP and CAS, together, will be the leading player in Morocco with a unique model in irrigation, agro-inputs and water infrastructure.
“This will be facilitated by the fact that CMGP and CAS have similar corporate cultures sharing the same values of excellence, integrity and caring for their employees, customers and the wider ecosystem,” said Youssef Moamah, CEO, CMGP.
CAS was founded in 1967 by Phillipe Alleon. Current CEO Jacques Alleon has spearheaded the expansion of the business across Morocco since joining in 1994.
“This is a day of celebration and pride for us all – the combination of our two highly complementary companies will create the reference for the Moroccan and African farmer in agriculture and water, providing significant growth opportunities, enabling us to become better partners for our customers and suppliers, and offering better development opportunities for all our employees,” said Jacques.
DPI, a leading Pan-African private equity firm first invested in CMGP in 2018, supporting the business in diversifying its product range and expanding its geographical footprint in Africa.
“Through the combination of CMGP and CAS, we will be able to further diversify the business’ operations, accelerate its growth in Morocco, and further expand its footprint across Africa.
“This combined business will benefit from a unique value proposition and strong distribution which we believe will deliver impressive growth in Morocco and across West Africa,” said Sofiane Lahmar, DPI Partner.
The deal is of significant importance to the Agriculture sector in Morocco as it employees about 40% of the nation’s workforce and remains one of the main drivers of growth for the economy, contributing around 14% to GDP.
As part of the transaction, DPI has committed additional capital into CMGP and is delighted to welcome AfricInvest as a new shareholder in the enlarged company.
The transaction is subject to customary approvals including regulatory approvals and is expected to close in Q1 2021.
Smyle Finance, Derenia Capital, Naciri & Associés Allen & Overy, PwC, and the Boston Consulting Group advised CMGP and its shareholders on the transaction.
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