DLA Piper has advised ZZ2 Group (ZZ2), Mahela Group (Mahela), and their agricultural partnership Skutwater Boerdery (Skutwater), on a non-controlling minority equity investment into Skutwater by AgDevCo. The investment will see the partnership increase the size of its citrus and avocado orchard from 190 hectares to 400 hectares in the first phase, with the potential to expand to 1,500 hectares in the second phase of development. The orchard is expected to ultimately employ 1,200 full-time workers on completion.
ZZ2 is a leading South African producer and exporter of fruits and vegetables, best known for its tomato, avocado and other deciduous fruit products. They have multiple farms across South Africa and Namibia. Mahela is one of South Africa’s biggest privately-owned citrus producers and exports fruits and nuts to international markets including Europe, Asia, and the Middle East.
AgDevCo is a specialist investor in African agriculture, growing sustainable and impactful agricultural businesses, with USD280 milion under management.
The DLA Piper team was led by André Visser, director in the Corporate practice in the Johannesburg office. He was supported by directors Jackie Pennington and Nick Grootes (both Finance), Werner Rysbergen (Lit&Reg), Senior Associates Danielle Robbertze and Zama Shoba, and Associate Mia Dupper (all Corporate).
AndrĂ© Visser commented: “This transformative transaction is set to significantly boost the growth of the local citrus and avocado industry. This investment not only underscores the partnership’s commitment to sustainable agricultural development but also promises to bring substantial economic benefits to the local community.”
With more than 1,000 corporate lawyers globally, DLA Piper helps clients execute complex transactions while supporting clients across all stages of development. The firm has been rated number one in global M&A volume for 14 consecutive years, is number 1 across Africa by M&A deal volume, according to Mergermarket, and number one in M&A in combined global deal volume according to PitchBook.
