INTERNATIONAL AGRI-BUSINESS: ZERAIM

Zeraim Gedera, a leading Israeli agricultural firm that specializes in the cultivation, production, and international marketing of seeds is repositioning itself for either an IPO or acquisition by a larger agriculture firm in late 2007 or early 2008. The company, founded in 1952, focuses on creating and improving new varieties of seeds and has long been at the forefront of the biotech industry. Zeraim Gedera is a pioneer regarding safe molecular methods for disease resistance and also has interests in organic seeds and farming. The agri-brand has close ties to the Israeli scientific community and works with researches at the Weizmann Institute, the Volcani Center and the Agriculture Department of Hebrew University.

Soon after joining the board of directors, Jakob Vos, a thirty year veteran of the seed business, oversaw a period of exciting opportunity and increased expansion. Zeraim Gedera is currently exploring several transactional opportunities with European and North American firms. Additionally, Vos has guided the Israeli brand into North American markets, opening a new R&D facility in Mexico to better serve Mexican and American interests. Vos’s leadership and experience was brought to Zeraim Gedera following a two tiered deal involving Markstone Capital Group. Thanks to the outstanding leadership of Vos and Elliot Broidy, Zeraim Gedera now occupies a unique position in agricultural and scientific fields with remarkable growth potential.

UPDATE:
Globes recently reported that the Swiss agricultural concern Syngenta International AG has acquired Zeraim Gedera Ltd for $90-100 million. The firm was previously held in private ownership through Elliott Broidy’s private equity fund, Markstone Capital Group. Markstone, managed by Amir Kess and Ron Lubash, and founded by Los Angeles based investor Elliott Broidy, purchased Zeraim Gedera for $48 million in 2005. The $100 million dollar price tag represents a return of over 100%. Zeraim Gedera reported $25 million in revenue in 2005 and has grown 20-25% per year since Markstone invested in it. Ohad Zuckerman, Zeraim Gedera’s President and CEO, has hinted at $30 million revenue and expects to surpass $40 million this fiscal year. The company’s rapid growth and sound management team are two reasons for the Swiss giant’s buyout and also point to the strong leadership of Broidy, Kess and Lubash. Additionally, Zeraim’s bottom line will benefit from Syngenta’s international infrastructure, especially in sales and marketing. Zeraim Gedera currently employs over 200 people and operates in Israel as well as in international agricultural and seed markets. The Israeli seed maker focuses on creating superior seeds and was originally started by 7 families in 1952. The Swiss Agricultural firm has publicly commented on the close relations that Zeraim Gedera has with research institutes, other brands within the private sector and also with academic universities in Israel and beyond. The Israeli company focuses on high-value crops such as melon, pepper and tomato seeds and has consistently demonstrated superior research and cultivation technologies. Israeli germplasm and seed breeding capabilities are well documented and will integrate well into Syngenta Vegetable Seeds portfolio. Mike Mack the COO of Syngenta Seeds has said, “This acquisition further expands Syngenta’s position in high-value growth segments. Zeraim Gedera’s portfolio and its strong presence in Mediterranean markets ideally complement our vegetable seeds business.”