BPL participates in Rubia Natural Colours

Bedrijfspensioenfonds voor de Landbouw (the pension fund for the agro sector) acquires a minority participation in Rubia Natural Colours. Rubia produces natural dyes from renewable natural sources on an industrial scale. These dyes are applied in the tapestry industry, in fashion and apparel, in upholstery, in cosmetics and in the paper industry. The products are in the market introduction phase and the management anticipates a rapid growth of the demand for durable and recycled materials.

BPL’s asset manager Syntrus Achmea asked Strategique to perform confirming due diligence and to assess the financial documentation and projections on which basis parties had reached a principle agreement on the participation. The engagement included a juridical scan, which resulted in adjustments in IP and certain contracts. Strategique conducted customer interviews in several countries and sectors, assessed the market size and Rubia’s competitive position and tested the assumptions of the management. On this basis inconsistencies in the business model were corrected and alternative projections and valuations were performed. After presenting and discussing the final conclusions, Strategique construed and engineered a new participation structure which was negotiated and agreed between the parties.