Divestiture • Agriculture

CPP Investments Acquires Glencore Agricultural Products

On April 6, 2016, pension CPP Investments acquired agriculture company Glencore Agricultural Products from Glencore for 2.5B USD

Acquisition Context
  • This is CPP Investments’ 1st transaction in the Agriculture sector.
  • This is CPP Investments’ 34th largest (disclosed) transaction.
  • This is CPP Investments’ 1st transaction in Switzerland.

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M&A Deal Summary

Date April 6, 2016
Target Glencore Agricultural Products
Sector Agriculture
Buyer(s) CPP Investments
Sellers(s) Glencore
Deal Type Divestiture
Deal Value 2.5B USD

Target Company

Glencore Agricultural Products

Switzerland
Glencore Agricultural Products is a globally integrated grain and oilseed business primarily focused on grains, oilseeds products, rice, sugar, pulses and cotton with activities including origination, processing, storage, logistics and marketing. Company have controlled and non-controlled facilities for storage, handling and processing, in strategic locations. The business is supported by an extensive silo and export elevator network. Company suppliers are farmers, farming co-operatives, processing plants, local exporters and global merchants. Company customers include the processing industry (food, animal feed and consumer products), local importers and government purchasing entities.
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Buyer Overview 1

Buyer
DESCRIPTION

CPP Investments is a Canadian pension fund focused on a variety of investing strategies, including public equities, debt, and alternative investments. The Firm's private equity arm looks to acquire direct stakes in private companies, as well as make fund investments and acquire secondary positions. For direct stakes in companies, CPP looks to invest across North American and Europe and seeks to commit a minimum of $150 million per transaction. CPP has no industry preferences however the Firm will not invest in real assets. CPP Investments was established in 1997 and is based in Toronto, Ontario.


Deal Context for Buyer #
Overall 27 of 176
Sector: Agriculture 1 of 1
Type: Divestiture 4 of 18
Country: Switzerland 1 of 3
Year: 2016 3 of 11
Size (of disclosed) 34 of 60
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-03-22 BYJU S

Bengaluru, India

BYJU'S is an educational software company developing online learning solutions for K3, K10, K12, NEET, JEE, UPSC & Bank Exams. BYJU'S was established in 2008 and is headquartered in Bengaluru, Karnataka.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-04-28 HBX Group

Palma de Mallorca, Spain

HBX Group is an independent global business to business (‘B2B’) bedbank. HBX Group also provides transfers, excursions and tours, meetings and events and cruise handling services. HBX Group client base includes online travel agencies, traditional travel agencies, travel re-sellers, tour operators, and airlines. HBX Group was founded in 2001 and is based in Palma de Mallorca, Spain.

Buy €1.2B

Seller Profile 1

SELLER

Glencore

Baar, Switzerland

Category Company
Founded 1974
Sector Metals/Mining
Employees84,146
Revenue 230.9B USD (2024)
DESCRIPTION

Glencore is a provider of physical commodities, including energy (oil and coal), base metals, soft commodities, and agriculture to industrial consumers. These commodities originate from Glencore's directly or indirectly owned production assets or are secured by Glencore from third parties. Glencore also provides financing, logistics, and other supply chain services to producers and consumers of commodities. Glencore was founded in 1974 and is based in Baar, Switzerland.


Deal Context for Seller #
Overall 4 of 8
Sector: Agriculture 1 of 1
Type: Divestiture 4 of 8
Country: Switzerland 1 of 1
Year: 2016 2 of 3
Size (of disclosed) 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-02-24 Inatech Solutions

London, United Kingdom

Inatech Solutions Ltd. is an independent oracle service provider. It offers consulting, ongoing application management and cloud hosting.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-10-20 Glencore Rail Pty

Sydney, Australia

GRail’s coal haulage business was established in 2010 as an alternative rail service provider to the incumbent railroads in the Hunter Valley and has grown to be the third largest coal haulage business in Australia. GRail since inception and presently provides haulage and logistics services for approximately 40 million tonnes per year of steam coal that is among the lowest cost and highest quality coal in the world.

Sell AU$1.1B

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