SENEGAL – CMGP, a leading provider of irrigation solutions and water infrastructure headquartered in Morocco with operations across North and West Africa, has acquired stake in Senegalese company Delta Irrigation.
This follows inking of a deal between CMGP and I&P through its fund I&P Afrique Entrepreneurs 1 (IPAE 1), with the latter offloading all its remaining stake in Delta Irrigation to CMGP, marking its exit from the company after 10 years.
IPAE 1 notes that CMGP Senegal has acquired majority of the shares of Delta Irrigation and will progressively acquire the whole company to deploy its ambitious strategy in the region.
Created in 1995 and rich in experience and know-how, CMGP is today the leader of the irrigation market in Morocco and its recent merger with CAS has expanded its portfolio to include crop protection and inputs for production.
With a complete range of products and a close collaboration with the major manufacturers on an international scale, CMGP covers the following activities: design and distribution of irrigation equipment, installation of irrigation projects, geomembrane basins, and pumping stations, and supply of seeds and phytosanitary products.
“After nearly ten years of partnership, we are happy and proud of Delta irrigation’s track record. The permanence of the quality, the structuring of the organization, and the developed customer portfolio are as many strategic assets that will allow the activity to continue to grow significantly with the CMGP.
“A new stage is taking shape with a partner in the business and a still firm ambition,” said Mamadou Ndao, Investment Manager at Investors & Partners.
IPAE 1 invested in Delta Irrigation since 2012, and has since then successfully grown to become a leader in the irrigation market in the sub-region that sells and installs irrigation equipment and supplies technical maintenance.
The company provides its services particularly to agricultural companies, allowing them to regulate their production independently of weather constraints.
IPAE 1 has notably supported Delta Irrigation by providing the company with patient capital to finance the company’s development.
IPAE 1 also blacked out its regional diversification from becoming a pioneer in the irrigation sector in the Senegal River Valley only to extending its products and services to Côte d’Ivoire.
In addition, I&P supported the company in implementing a management information system, the definition and implementation of a commercial strategy, and the search for strategic and financial partners.
This partnership has had strong impacts as Delta Irrigation increased its level of activity tenfold and created sixteen permanent jobs.
In particular, the company has promoted the development of more rational and efficient use of water and energy.
Furthermore, Delta Irrigation has contributed to improving its clients’ agricultural productivity and food security.
In addition, employees have received health coverage and the opportunity to follow training courses and thus acquire new technological skills.