Paine Schwartz Partners has closed on a partial realization of its investment in Special New Fruit Licensing (“SNFL”). SNFL and International Fruit Genetics (“IFG”) have merged under the joint ownership of AM FRESH Group, EQT Future and Paine Schwartz, completing two transactions:
- EQT Future, AM FRESH Group and Paine Schwartz acquired IFG, combining two highly developed table grape gene-pools, which will enable a wider spread of more sophisticated varieties with unique traits and characteristics.
- EQT Future invested in SNFL, with Paine Schwartz reinvesting a portion of its sale proceeds in the go-forward SNFL and IFG platform. Kevin Schwartz will remain on the Board of Directors of the combined IFG and SNFL business. We maintain conviction that there is significant upside potential to be realized from our reinvestment.
Since our investment in September 2019, Paine Schwartz has provided access to world-class specialty crop and genetics experts to facilitate the acceleration of R&D, partnered with management to re-develop a more aggressive future licensing plan, and supported geographic expansion in key geographies such as Australia and China by leveraging Paine Schwartz’s deep, on-the-ground network.
This transaction structure allows Paine Schwartz to participate in the material value creation opportunities that lie ahead for an integrated SNFL and IFG. Consistent with our thesis-driven approach, we continue to see significant innovation opportunities across the global fresh produce sector. A combined SNFL and IFG, with expanded resources, will be able to achieve an increased rate of innovation in sustainable grower solutions targeting issues such as disease resistance, climate variability and water reduction, as well as drive unique value propositions for consumers targeting flavor, health attributes and freshness.
