A Colombian agricultural mineral producer, specialized in producing and marketing bio-fertilizer, is seeking US $110M in growth capital through an equity or debt partner to expand their manufacturing capacity and meet growing demand across local and export markets. The firm is a Colombian-based green company built on circular economy principles by repurposing old mining assets and stockpiled material into fertilizer production. The Colombian government recognized the company as the first mine reconversion project of its kind and a ZOMAC-designated zone.
It now carries a full line of bio-fertilizer products sold both locally and internationally.
Product description
Their core product is a magnesium and silicon based soil conditioner, sold in multiple mixes tailored to specific crop and soil needs. Their products can be used across a wide range of crops including sugar cane, rice, bananas, coffee and fruit, and is also compatible with both conventional and organic fertilization programs.
Assets
The producer holds approximately 13 million tons of magnesium silicate inventory, worth US $517M, that has already been extracted and partially processed, and independently certified.
They also possess a mining concession, secured through 2051, which provides access to more than 52 million tons of proven reserves and a further 212 million tons of inferred reserves.
Physical assets:
- 13 million of inventory (valued at US $517M)
- 25,000 square meters processing plant (already built) designed to scale to 1 million tons/year (current capacity ~70k tons/year)
- 300 hectares of land
- 15 km internal roads
- 14 km highvoltage transmission lines
- Supporting logistics and workforce facilities (campsites, dining halls)
Commercially, there are established relationships with local and international agribusiness buyers, supported by signed LOIs and MOUs, alongside an active pipeline of prospective clients across Central America, the Caribbean, and Mexico.
Because its primary raw material is already extracted, the producer benefits from a material cost advantage relative to conventional producers, translating directly into stronger margins. Our client also holds mining and environmental licenses in good standing and benefits from strong institutional and government support.
Investment opportunity
The company is seeking US $110M growth capital, structured as debt or equity (or hybrid), to fund the next phase of its expansion. Proceeds would be directed toward increasing production capacity (building logistics and distribution center, upgrading transportation infrastructure, and funding working capital) which will be expected to reach 1.1 million in annual tons.
Given their strong financial position, lack of significant debt, and substantial valuation, they plan to explore a strategic exit through an IPO or the issuance of green bonds.
Economic potential
The company's business plan anticipates revenue growing from approximately US $23M in Year 1 to roughly US $434M by Year 5, as production scales from approximately 70,000 to 1,000,000 tons per year, reaching approximately US $607 million by Year 10.
Adjusted EBITDA margins are expected to expand from approximately 47% in Year 1 to approximately 58% by Year 3 and to be sustained at that level through Year 10, reflecting the company's structural cost advantage from operating largely off already-extracted inventory.
The company projects a total revenue of ≈ US $1,093M in the first 5 years of operation with an adjusted EBITDA of ≈ US $627M.
- Year 1 and 2 will be dedicated to consolidating the operation
- Year 3 and 4 will be dedicated to the plant expansion to reach 1 million tons/year
- Year 5 will be dedicated to the consolidation of the business plan
Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Year 10
Revenue (US $M)
23
135
199
303
434
607
Sold Volume (tons/year)
70,000
350,000
500,000
720,000
1,000,000
1,000,000+
Adjusted EBITDA (US $M)
8
77
114
175
252
354
Adjusted EBITDA Margin
47%
57%
58%
58%
58%
58%
5-year revenue CAGR: 79%
Implied pre-money enterprise value: US$1.1Bn – $1.7Bn
Detailed business plan and valuation can be shared upon signature of an NDA.
Currency: USD
Target Price / Revenue: 5.03x
Target Price / EBITDA: 8.77x
