Limagrain and Crédit Agricole Group signed cooperation agreement

By CnAgri Print The French agricultural cooperative Limagrain and the Crédit Agricole Group have just entered into a long-term strategic partnership involving a €70 million investment by the banking group in the capital of Groupe Limagrain Holding SA (GLH), the holding company that is majority owned by Limagrain and directly controls the various divisions of its business.

Limagrain has invited a new minority shareholder to contribute to the capital of its lead holding company, thus strengthening its current shareholding structure with a view to expediting the implementation of its strategic objectives. These include continuing to reinforce its competitiveness and intensifying the company’s development internationally through a balanced blend of targeted acquisitions and organic growth in its key business activities: vegetable seeds, field seeds and cereal products.

The investment being made by the Crédit Agricole Group was notably motivated by Limagrain’s ambition to develop its Bakery Products division with the aim of significantly increasing its size and ensuring it quickly takes on an international dimension. Another objective is to consolidate the position of Vilmorin & Cie, a listed company that covers all of the Group’s seed businesses, among the world’s leading seed companies.

The Crédit Agricole Group, which is a major provider of financing to the French agricultural sector, is already part of a long-standing banking partnership with Limagrain through the Caisse régionale du Crédit Agricole Centre France and LCL. This move is a clear sign that it wishes to support Limagrain’s strategy in the long term.

The Crédit Agricole Group’s investment is being made through the intermediary SODICA Capital Investissement by the Caisse régionale du Crédit Agricole Centre France, as well as by LCL.

It should be remembered that alongside Limagrain, GLH also includes the Fonds Stratégique d’Investissement (Strategic Investment Fund, or FSI) and Unigrains.

“In partnership with the Crédit Agricole Group, we have invited participation from a new minority shareholder who shares our values and supports our strategy and ambitions, i.e. to strengthen our development internationally and help promote the various activities of the Limagrain Cooperative”, says Jean-Yves Foucault, Chairman of Limagrain. “We see this long-term strategic partnership as an ideal addition to the range of Limagrain’s current financial and banking partners.”