Farmfront Announces Commercial Partnership with BF Group to Supply Irrigation Solutions

Rhea-AI Summary

Farmfront Group has entered into a strategic commercial partnership with BF International Best Fields Best Foods (BFI), investing €10 million for a minority stake. Through this five-year agreement, Farmfront becomes an exclusive supplier of pivot irrigation products in Algeria, Libya, and Senegal, and a preferred partner in other regions.

The partnership aims to support BF Group's international expansion and agro-industrial development in developing economies, particularly in Africa. Both companies target to develop farmland across fifteen countries, covering 150,000 hectares by 2027.

Farmfront, backed by Carlyle (NASDAQ: CG), combines irrigation providers OCMIS, RKD, Irrimec Group, and Otech. With headquarters in Milan and 450+ employees across 6 manufacturing sites in Italy, Spain, and France, it serves over 100 countries. BF Group, Italy's agro-industrial leader, manages over 30% of national agricultural land.

Positive

• €10 million strategic investment for minority stake in BFI
• Exclusive supplier agreement in key African markets
• Partnership targets development of 150,000 hectares across 15 countries by 2027
• Geographic expansion into developing markets

Negative

• None.

Insights

Investment Analyst

This strategic partnership marks a significant expansion move for Carlyle's portfolio company Farmfront, with implications that extend beyond the initial €10 million investment. The deal structure reveals three key value drivers:

• Market Expansion Strategy: Exclusive supplier rights in Algeria, Libya, and Senegal, combined with preferred partner status globally, creates a strong competitive moat in emerging markets. The target of 150,000 hectares across 15 countries by 2027 suggests potential annual recurring revenue streams from both equipment sales and maintenance services.
• Strategic Alignment: Partnership with BF Group, which controls 30% of Italian agricultural land, provides immediate credibility and market access. This alignment with Italy's Mattei Plan could unlock additional government support and funding opportunities.
• Portfolio Value Enhancement: For Carlyle, this represents a strategic positioning in the growing agricultural technology sector, particularly in water conservation solutions - a critical ESG focus area. The deal structure suggests potential for significant value appreciation through market expansion and technology deployment.

  The partnership's focus on developing economies in Africa presents both opportunities and challenges. While these markets offer substantial growth potential due to underinvestment in agricultural infrastructure, successful execution will require navigating complex regulatory environments and potential political risks in regions like Libya. The exclusive supplier arrangement provides a defensive moat against competitors while ensuring steady revenue streams.

  The deal's structure, combining equity investment with a commercial partnership, creates multiple value capture opportunities: immediate equipment sales, recurring maintenance revenue, and potential upside from BFI's growth. For Carlyle investors, this represents a strategic enhancement to their agricultural technology portfolio, with clear paths to value creation through market expansion and operational synergies.

MILAN--(BUSINESS WIRE)-- Farmfront Group (“Farmfront”), a leading global platform of irrigation providers backed by global investment firm Carlyle (NASDAQ: CG), announces that it has signed a strategic commercial partnership and supply agreement with BF International Best Fields Best Foods Limited (“BFI”), a company of BF S.p.A. group (“BF Group”) to provide irrigation solutions to its subsidiary, BFI. The agreement is intended to support BF Group’s international expansion plans and support agro-industrial development in developing economies.

Farmfront has invested €10 million for a minority stake in BFI and, through this five-year agreement, becomes an exclusive supplier of pivot irrigation products and solutions to the business in certain geographies, including Algeria, Libya, and Senegal, as well as becoming a preferred partner across all other geographies. Farmfront and BF Group will jointly support the development of agro-industrial capabilities in countries across Africa, consistent with the Italian government’s ‘Mattei Plan’. Farmfront and BF Group share an ambition to build partnerships and create new and highly efficient farmland across fifteen countries and 150,000 hectares by 2027.

Farmfront combines leading irrigation providers OCMIS, RKD, Irrimec Group, and Otech. Headquartered in Milan and employing more than 450 people across 6 manufacturing sites in Italy, Spain, and France, Farmfront is the largest mechanical irrigation platform in Europe with sales to over 100 countries across the globe.

BF Group is the leader in Italy’s agro-industrial sector, operating across all stages of the agro-industrial value chain. The firm is also the largest developer of agricultural fields in Italy, covering more than 30% of national agricultural land.

Luca Zacchetti, Chairman at Farmfront, said: “We are pleased to partner with BF Group, an Italian agro-industrial leader. Combining our heritage, expertise, and scale in irrigation with BF Group’s international network will allow Farmfront to expand its presence in Africa, provide crucial improvements to irrigation efficiency to farmers in a range of developing economies, and strengthen our core mission to conserve and protect global water resources.”

Federico Vecchioni, Chief Executive Officer, at BF Group, said: “This agreement with Farmfront represents a key milestone for our international strategy. As Europe’s leading irrigation provider, Farmfront is the ideal partner to promote stronger farms, and, ultimately, improved economic growth and opportunities in our target markets. We are excited to begin deploying Farmfront technology across our existing projects.”

About Farmfront

Launched in October 2023, Farmfront Group is Europe’s irrigation expert and a leading global platform of irrigation providers, combining Ocmis, Irrimec, Otech, and RKD. Headquartered in Milan, Farmfront employs more than 450 people across 6 manufacturing sites in Italy, Spain, and France, with sales to over 100 countries across the globe.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250217491101/en/

Media Contacts

Farmfront

Alex Simmons, Edelman Smithfield

alex.simmons@edelmansmithfield.com

Alfie Tisdall, Edelman Smithfield

Tel: +44 (0) 7 581 025 104

alfie.tisdall@edelmansmithfield.com

BF S.p.A.

Ad Hoc Communication Advisors

Tel. +39 02 7606741

Mario Pellegatta (mario.pellegatta@ahca.it)

Ivan Barbieri (3351415581; ivan.barbieri@ahca.it)

Source: Farmfront Group

FAQ

What is the value of Farmfront's investment in BF International (BFI)?

Farmfront invested €10 million for a minority stake in BF International (BFI).

Which countries are included in Farmfront's exclusive supply agreement?

Farmfront becomes an exclusive supplier in Algeria, Libya, and Senegal, while being a preferred partner in other geographies.

What is the target development area for Farmfront and BF Group's partnership by 2027?

The partnership aims to develop farmland across fifteen countries, covering 150,000 hectares by 2027.

How many manufacturing sites does Farmfront operate and where are they located?

Farmfront operates 6 manufacturing sites across Italy, Spain, and France.

How many countries does Farmfront currently serve with its irrigation solutions?

Farmfront serves over 100 countries globally with its irrigation solutions.