The interest of venture capital funds in the potato sector is viewed with suspicion in Spain

Published Sep 24, 2021

Tridge summary

A Spanish potato company, Patatas Hijolusa, has been acquired by venture capital fund, Proa Capital, for approximately €100 million. The acquisition has raised concerns among producer organizations such as Asaja, with Joaquín Pino expressing worries about the potential disruption of the market and the effects on rural jobs. Pino highlights the risks of fast economic growth and the need for social consideration in the agri-food sector, citing the negative impacts of French capital on the Spanish dairy sector as a cautionary example.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The interest of venture capital in the potato sector, as evidenced by the acquisition of the company Patatas Hijolusa, one of the largest players in Spain, is closely followed by producer organizations such as Asaja. The sale of a majority stake in Patatas Hijolusa to a venture capital fund, reported by business newspaper elEconomista.es, "is not good news for the sector," said Joaquín Pino, vice president of Asaja, Castilla y León division. The Gómez brothers, owners of the company from the province of León, solicited offers from venture capital funds this summer to sell their majority stake in the company. After an initial screening, Proa Capital came out as the favorite to take charge of a company that brought 110 million kilos of potatoes to the market last year and had a turnover of € 60 million. The venture capital fund would pay around €100 million for Patatas Hijolusa. "It is not good news that hedge funds are entering the agri-food sector, in this case a packaging ...
Source: AGF

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