BDB Pitmans advise leading global pesticide provider, Ecospray Ltd, on equity fundraise and secured revolving debt facility

Top UK law firm, BDB Pitmans, has advised Ecospray Ltd, a leader in the global bio-pesticide sector, in relation to an equity fund raising and secured revolving debt facility. The sums raised will be put towards growth funding.

Ecospray Ltd has issued shares to CBC Europe Srl (CBC), a wholly owned subsidiary of the Japanese CBC Co. Ltd. – a leading distributor and manufacturer of bio-protection products through its BIOGARD® Division. CBC BIOGARD® develops and distributes a wide ranging portfolio of bioprotection tools focusing on environmentally friendly products, including IPM systems, supporting a farming sector where people can work to build affluence sustainably and in safety.

Bury St Edmunds-based Ecospray deliver innovative crop protection solutions to twenty countries around the world. CBC’s investment will allow the business to extend its offering.

The global nematicide market is approaching $1.5 billion today and is growing as resistance challenges expand. Ecospray has for over two decades developed, patented and commercialised a leading biological formula based around the properties of garlic, one of nature’s natural pesticides. Target markets are not limited to the agricultural sector, it has significant uses in turf and ornamentals as well. The company numbers Premiership football clubs, rugby stadia and major golf courses amongst its customer base, where the product NEMGUARD® is utilised to prevent nematode attacks on turf.

Ecospray was founded by the van Cutsem and Knights farming families, is chaired by Edward van Cutsem and supported by a blue chip Board including John Coomber, ex CEO of insurance giant Swiss Re and Hugo van Vredenburch, ex Executive Chairman of Interactive Investor and TMF Group. Ecospray has the European approval until 2036 for the active substance garlic extract used in the NEMGUARD® plant protection product and has registrations on a range of crops in over 20 countries globally (covering four continents), with a further nine countries pending.

According to Associate Professor Chris Hamilton of Chemical Biology at the University of East Anglia;

‘Unlike most chemical pesticides, the naturally occurring bioactives in NEMGUARD® exert their effects via multiple modes of action to deliver efficacies that match existing organo-phosphates whilst also making the emergence of pest resistance extremely unlikely.’

CEO of CBC EUROPE Vittorio Veronelli said ‘we have worked with Ecospray for a number of years and this is a logical and exciting step for us to expand our portfolio and participate in the company’s strategic direction’.

Edward van Cutsem, Chairman of Ecospray Ltd said:

‘The investment by CBC, a well-known partner of ours, is a reflection of the growing opportunity for sustainable nematicide solutions across the global market. As a pioneer in the sector, we have needed patience but the wind is firmly blowing in the sails now as growers and consumers look for effective, price comparable, sustainable alternatives to incumbent chemistries. We are delighted that CBC have joined us on this journey.’

Peter McDonald CEO of Ecospray said:

‘We welcome this investment by CBC who have great insight into the European market and can help us develop further opportunities for NEMGUARD®. It was a pleasure to work with Duncan [Walker] who provided invaluable commercial insight and excellent client service throughout.’

BDB Pitmans’ corporate and commercial team were led by partner, Duncan Walker. Of the deal, Duncan commented:

‘It was a pleasure to support Peter and the senior leadership team in Ecospray’s dedication to finding natural and sustainable alternatives, for crop protection plays a significant part in reducing pollution, benefitting both the agricultural industry and biodiversity in general. I wish them and their investors every success on the journey ahead.’