Brazilian fruit giant buys Spain’s El Abuelo to dominate melon market

Agrícola Famosa, Brazil’s largest fruit exporter, has acquired El Abuelo, a leading Spanish company specializing in melons and watermelons. Although the transaction value was not disclosed, the deal established the largest supplier of these fruits to Europe, with a combined revenue of R$1.4 billion based on 2023 data.

“We plan to offer melons and watermelons to Europe, our top market, year-round,” Carlo Porro, CEO of Famosa, told Valor. “This acquisition is just the beginning; we are also considering other purchases.”

Brazil’s production of melons and watermelons occurs from August to February. From March to May, major global suppliers include Central America and Senegal. The next window, from June to August, is primarily served by Spain.

“With this acquisition, which includes operations in Spain and Senegal, we ensure uninterrupted supply to our customers in the melon market,” Mr. Porro said. In Europe, El Abuelo sources melons and watermelons from local producers, while in Senegal, the company operates 350 hectares of cultivated land.

Three years ago, Mr. Porro mentioned to Valor that Famosa needed additional production areas and partnerships to meet the growing demand for fruit in Europe, Asia, and the United States. In 2021, the company launched Melon&Co in the UK to supply supermarkets directly.

With El Abuelo, Famosa’s annual production will increase from 270,000 tonnes in 2023 to 350,000 tonnes. The acquisition also expands the variety of fruits offered.

Mr. Porro confirmed that both companies will retain their existing brands and management teams.

El Abuelo, a family-owned business of melon market based in Murcia, Spain, was founded in 1928 to produce melons and has since been run by three generations of the family. Over time, the company expanded into watermelon production.

“This partnership is a milestone for El Abuelo’s growth. It allows us to expand our markets with the products that have made us leaders and introduce new varieties. Agrícola Famosa is a strong partner, and together we’ll provide top-quality melons and watermelons year-round,” said Celedonio Buendía, managing director of El Abuelo, in a statement.

Famosa’s history mirrors that of El Abuelo. The Brazilian company began 30 years ago, cultivating melons on just 3 hectares with 22 employees in Ceará. Today, headquartered in Mossoró, Rio Grande do Norte, it employs over 8,000 people and manages 30,000 hectares in Brazil’s Northeast, including 10,000 hectares of farmland.

Famosa reported net revenue of R$1.07 billion in 2023, with its UK-based Melon&Co unit generating £50 million in revenue.

In 2021, Famosa welcomed Spanish group Citri&Co as a minority shareholder. Citri&Co, controlled by private equity firm Miura Partners, had previously acquired another Murcia-based group, Frutas Esther, in 2019 to expand its melon operations. Headquartered in Castellón, Citri&Co posted €591 million in revenue in 2022 and €91 million in 2023.

Source: Valor Internacional

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