28 Aug 2021

DPI and AfricInvest announce the completion of the merger between CMGP and CAS

DPI and AfricInvest announce the completion of the merger between CMGP and CAS

ADP II, a fund advised by DPI, and AfricInvest announce the completion of the combination between CMGP and CAS, contributing to the emergence of a Moroccan and pan-African agricultural leader.

London and Casablanca, July 1, 2021 - African Development Partners II ("ADP II"), a fund advised by Development Partners International ("DPI"), a leading pan-African impact private equity firm with a proven track record of investing on the continent, and AfricInvest, a longstanding pan-African alternative investment platform, with local teams in more than 10 offices in Africa, Europe and the Middle East, are pleased to announce the completion of the historic merger of Compagnie Marocaine de Goutte à Goutte et de Pompage ("CMGP") with Comptoir Agricole du Souss ("CAS"), giving birth to CMGP- CAS, a new champion of Moroccan and African agriculture.

This strategic alliance marks AfricInvest's partnership with ADP II through an investment targeting the expansion of irrigation facilities and infrastructure to enable superior and sustainable agricultural production. Through its investment, the AfricInvest team also aims to support the growth of CMGP-CAS partnerships on the African continent, mobilizing its own network, particularly in East and West Africa.

Agriculture is a key industry in Morocco, employing 40% of the Moroccan workforce and accounting for 14% of GDP. Building on a combined 100 years of experience in the sector and with a focus on innovation, the new CMGP-CAS entity, with a combined turnover of MAD 1.7 billion, will strive to develop solutions in irrigation, fertigation, crop protection and solar energy to address key challenges in Africa, such as water scarcity and food security. CMGP and CAS also complement each other in terms of product range and distribution channels, which will enable the resulting group to become the reference partner for farmers in the region, offering a "one-stop-shop" in the Moroccan and African agricultural sector.

Youssef Moamah, founder and CEO of CMGP, said: "This is a historic day for both our companies. Together, we are clearly a Moroccan leader in irrigation, agricultural supplies, solar energy and water infrastructure. We have worked closely together to define our strategy and operating model in detail and great progress has already been made in the execution of our combination".

Jacques Alléon, CEO of CAS, said: "This is a proud day for all of us. Our teams share the same values of excellence, integrity and care for our employees. This merger will accelerate the growth of our activities and allow us to become a partner and an employer of reference for Morocco and the African continent".

Sofiane Lahmar, Partner at DPI, commented: " We are delighted that CMGP has reached this milestone and look forward to continuing to work with Youssef, Jacques and the CMGP and CAS teams to implement this exciting new strategy. With the combination of CMGP and CAS, we have created a major industry player that will focus on innovation to better serve our customers and improve farmers' income and quality of life. The integration of the new company is underway, and we are confident that the close cultural fit and shared ambitions of both companies will enable a smooth transition, and help accelerate growth aspirations across the continent, with plans to reach all major markets in West Africa by 2024."

Brahim El Jai, senior partner at AfricInvest, added, "AfricInvest is excited to partner with CMGP-CAS in the next phase of its development, providing its partners with the best irrigation and fertilization solutions to maximize food production while reducing water consumption. In addition, we are pleased and proud to contribute to the realization of our impact promise by supporting the growth of irrigation and water and sanitation infrastructure solutions that tend to improve living conditions."

CMGP and ADP II were advised by Derenia Capital, Smyle Finance, PwC and Allen & Overy. CAS was advised by BMCE Capital Conseil and Norton Rose Fullbright. AfricInvest was advised by DLA Piper.