#AbuDhabi Wealth Fund ADQ Buys Stake in Unifrutti to Aid Food Supply - Bloomberg

Abu Dhabi Wealth Fund ADQ Buys Stake in Unifrutti to Aid Food Supply - Bloomberg

Abu Dhabi wealth fund ADQ agreed to buy a majority stake in Unifrutti Group as the coronavirus pandemic and the war in Ukraine prompt countries to take more steps to safeguard their food supply.

The proposed investment will help Unifrutti, a producer and distributor of fresh fruits and vegetables, expand its global footprint and bolster the food security of the United Arab Emirates, of which Abu Dhabi is the capital, according to a statement. Terms of the deal weren’t disclosed.

The pandemic has forced a rethink among many nations on how to feed their people. Oil-rich but water-scarce countries like the UAE, which imports most of its food, have been working on boosting domestic output and investing in farming abroad. Russia’s invasion of Ukraine, two of the major producers of grains, is now accelerating those plans.

For ADQ, the investment in Unifrutti will build on its food and agriculture portfolio. In 2020, the fund bought a 45% stake in Louis Dreyfus Co., one of the world’s largest traders of grains, oilseeds and sugar. Its agriculture portfolio also includes investments in Abu Dhabi-based companies such as Silal, Al Dahra Holding and Agthia Group.

“Our investment in Unifrutti would enable ADQ to develop a global platform for fresh produce that complements our other portfolio companies throughout the food value chain,” said Gil Adotevi, executive director of food and agriculture at ADQ.

Unifrutti, founded by Guido de Nadai in the 1940s as a fruit and vegetable import and export firm, operates in more than 50 countries, according to its website. With head office in Cyprus, the company had a pro forma consolidated turnover of $709 million in 2020 and employs about 11,000 people.