Agronomics (AIM:ANIC), the LSE-listed clean food investment company, has announced that its portfolio company Tropic Biosciences UK has acquired Rahan Meristem (1998), one of the world's leading banana propagation businesses, for $20 million.
Rahan, which has operated for more than 50 years, runs propagation capacity of more than 30 million plants per year across Colombia, Costa Rica, Ecuador, the Philippines and Israel, with expertise in Cavendish banana tissue culture as well as pineapple and avocado.
The deal gives Tropic a production and distribution platform in key banana-growing regions to support the commercialisation of its proprietary gene-edited varieties, including a non-browning banana and an extended shelf-life variety that lengthens green life by 12 days and cuts transportation waste by up to 50%.
Tropic completed a $105 million Series C funding round ahead of this acquisition and has positioned itself as the first fully integrated banana genetics company, spanning variety development, propagation and grower supply.
Agronomics first invested in Tropic in March 2020 and has committed a total of £2.3 million to date, with its stake carried at approximately £2.2 million, representing approximately 1.6% of the company's most recently reported net asset value of £139 million as at 31 March.
"This acquisition represents an important step in its commercial development," said Jim Mellon, Executive Chairman of Agronomics, adding that Tropic is "well positioned to help deliver improved crop resilience and contribute to greater food security."
