Investment
Approach

“Feeding the world's growing population will prove ever more difficult; but innovative solutions with investment potential could be ahead..”

- Jessica Alsford, Morgan Stanley.

Why Agrifood is the Priority Today

According to the United Nations, by 2050 the world’s population is forecast to surpass 10 billion people, a 50% increase. Furthermore, climate change is threatening an estimated 36% of current global food production capacity. Two further considerations: there is an increased global demand for food and awareness of the need to consume healthy food, and food technology innovation is at an all-time high, including nanotechnology and the use of blockchain for traceability. By 2050, the agricultural sector will be emitting an estimated 16% more carbon emissions than in 2017, exacerbating an already critical situation while the world is trying to reduce to net zero emissions–hence the importance of ESG. To keep pace with population growth and shifting demand, the global food supply will need to increase 50% over current volumes to accommodate projected consumption and adopt new technologies to increase productivity and improve sustainability.

Cereus Capital Partners´ strategy is to acquire food and agro-industrial companies sourcing and distributing agri-food products from the North and South/Central America’s most promising agri-regions.

Our experience shows that the post-acquisition work plan and staffing is of paramount importance and can be the difference between achieving modest or highly satisfactory financial results. By centering our strategy, operations and functional issues, we can get down the learning/experience curve more rapidly, set the right “blueprint” for each company, and generate expected growth and returns. Our goal is to maximize returns and expected multiples for our investors by continuously and consistently build a competitive advantage by the introduction of best practices and state-of-the art technologies

Criteria for Impactful Investments

We seek middle market companies with existing revenues, proven business models, sustainable competitive advantages, and a strategic plan focused on transformational growth. Our investment criteria include:

  • Minimum revenues: $ 15/20 million, including a possible roll-up, and positive EBITDA targeting 15 to 20% EBITDA after 3 to 5 years
  • Scalability and Market Readiness: Products or services primed for growth in North American and European markets, with possible roll-ups. Revenues should at least triple in a period of 3-5 years. We seek to establish business leaders in their specific segment of the food space.
  • Strong Company Leadership: Entrepreneurs and /or visionary leaders with a commitment to sustainable practices and community impact. Prior to any acquisition, Cereus Capital Partner’s principals spend a substantial amount of time with the company’s management to develop a growth plan and a specific implementation program that management is fully committed to.
  • Growth-Driven: Companies ready to leverage their potential for significant growth
  • High ESG Impact: Businesses that integrate environmental, social, and governance standards into their core operations.

Our Strategy for Accelerated Growth

Cereus supports scaling through a North American based platform acquisitions with strategic regional roll-ups, hands-on operational improvements, and state-of-the-art technology adoption. This approach allows us to consolidate leadership in key agri-food segments and expand distribution networks, enhancing profitability and strengthening our portfolio companies’ market position. In defining strategic and operational priorities, we leverage our consulting, investment banking and operating expertise to add value.