Sun World acquires Biogold to expand reach

SOUTH AFRICA – Sun World International LLC, a leading company in fruit variety development, has announced its acquisition of Biogold Group, a prominent South Africa-based fruit variety rights manager.

Known as Citrogold in South Africa, Biogold is a top player in citrus genetics and manages a vast collection of mango and avocado varieties.

David Marguleas, CEO of Sun World, expressed enthusiasm about the acquisition. “Sun World is known for our careful commercialization process. Similarly, we are deliberate with our acquisitions. This alliance is a powerful boost for both companies and represents a seamless integration of our strengths,” Marguleas said.

Biogold’s extensive range of citrus varieties adds significant value to Sun World’s leadership in table grapes and stone fruit. The acquisition also aligns with Sun World’s focus on citrus, mangoes, and avocados, which have seen increasing consumer demand significantly benefiting their 2,700+ licensees and attracting new customers.

With both companies holding rights to numerous not-yet-commercialized varieties, this deal enhances growth opportunities.

Viresh Ramburan, Vice President of Global Licensing at Biogold, will continue to lead Biogold’s operations post-acquisition. He noted, “This acquisition sets our combined company on a new growth path. We have specialized in helping fruit breeders monetize their genetic assets, and this move strengthens that capability.”

Biogold, founded in the late 1990s, grew from a small team led by Etienne Rabe and Abraham Van Rooyen into a global entity. Today, it operates in major citrus-producing regions worldwide. Van Rooyen, a well-regarded leader in South Africa’s citrus industry, will remain a trusted advisor to Sun World’s executive team.

The acquisition is the result of five years of discussions and aligns with Sun World’s strategy to target key fruit varieties. “Biogold’s expertise complements our vision for growth,” said Marguleas. “This acquisition accelerates our ability to offer top-notch genetics to our licensees and attract new customers.”

Sun World expands its reach to South Africa at a time when the region’s citrus industry is facing significant challenges attributed to extreme weather conditions.

The Citrus Growers’ Association (CGA) for instance, has revised its lemon export estimates downward due to severe weather. The forecast has dropped from 37.9 million cartons to 33.9 million cartons.

Key growing regions like Sundays River Valley and Citrusdal have been heavily impacted by strong winds and flooding, respectively.

Similarly, the CGA has adjusted its orange export estimates. The projection for Navel oranges has decreased from 25.7 million cartons to 21 million cartons, reflecting a 19% reduction.

Valencia oranges also saw a decrease, with the latest estimate at 51.6 million cartons, down from earlier projections.

Despite these challenges, the integration of Biogold into Sun World’s operations offers a promising outlook for future growth and innovation in the global fruit industry.