Development Partners International (DPI)’s backed Compagnie Marocaine de Goutte à Goutte et de Pompage (CMGP) has combined with Comptoir Agricole de Souss (CAS), creating a major new player in the Moroccan and African agricultural industry.

The transaction is subject to customary approvals including regulatory approvals and is expected to close in Q1 2021.

CMGP is an African provider of irrigation solutions and water infrastructure headquartered in Morocco, with operations across Morocco and West Africa. 

CAS is one of the leading players in the agri-supply sector in Morocco, operating in three segments: irrigation, crop protection, and seeds and fertilisers.

Founded in 1967 by Phillipe Alleon, current CEO Jacques Alleon has spearheaded the expansion of the business across Morocco since joining in 1994.

The two companies have delivered strong growth over the past two decades with around MAD1.6bn combined sales.

The combined business will also deliver significant positive social impact through improving farmers’ incomes and quality of life, helping solve significant water scarcity issues, and improving agricultural sustainability and food security.

DPI first invested in CMGP in 2018, supporting the business in diversifying its product range and expanding its geographical footprint in Africa.

As part of this transaction, DPI has committed additional capital into CMGP and welcomed AfricInvest as a new shareholder in the enlarged company.

Sofiane Lahmar, DPI Partner, said: “Agriculture in Morocco employs about 40% of the nation's workforce and remains one of the main drivers of growth for the economy, contributing around 14% to GDP. Through the combination of CMGP and CAS, we will be able to further diversify the business’ operations, accelerate its growth in Morocco, and further expand its footprint across Africa.”

“This combined business will benefit from a unique value proposition and strong distribution which we believe will deliver impressive growth in Morocco and across West Africa.  We are thrilled to support this key milestone for CMGP and look forward to working with Youssef, Jacques, and the CMGP and CAS teams on implementing this new and exciting strategy and vision.”

Youssef Moamah, CEO, CMGP, added: “The announcement is an important moment for our companies: CMGP and CAS, together, will be the leading player in Morocco with a unique model in irrigation, agro-inputs and water infrastructure. This will be facilitated by the fact that CMGP and CAS have similar corporate cultures sharing the same values of excellence, integrity and caring for their employees, customers and the wider ecosystem."

Smyle Finance, Derenia Capital, Naciri & Associés Allen & Overy, PwC, and the Boston Consulting Group advised CMGP and its shareholders on the transaction.