Clearwater International advises the management of Novag on its fundraising to boost business growth

Clearwater International has advised the management of Novag, a company specialising in no-till seed drills, on a €4m fundraising initiative from Famae Impact, a private equity firm, and Galia Gestion, a private equity firm, to continue and accelerate its development.

Founded in 2011 by Ramzi and Lotfi Frikha, Novag is an agricultural machinery company specialising in an innovative and comprehensive range of direct seed drills, allowing farmers to engage in more responsible, soil-friendly farming.

Headquartered in Fressines, Deux-Sèvres, the company designs, manufactures, and sells its equipment and spare parts through distributors and direct to farmers, while also providing consultancy and maintenance services. Novag sells its seed drills across the globe and has established a particularly strong presence in Australia and New Zealand. To date, more than 150 different seed drills are being used on farms of all sizes.

The high-performance technology deployed by the Novag team has made it possible to develop seed drills that can be used without ploughing, minimising soil disruption. The use of seed drills in direct seeding is one of the key pillars of regenerative agriculture. It involves sowing directly on the soil to avoid soil erosion, reducing carbon emissions and water loss. This allows the soil to regenerate and become enriched with organic matter necessary for plant growth, reducing fossil fuel consumption and the number of times the seed drill passes over the soil.

Established in 2019, Famae Impact is a private equity fund specialising in growth capital operations in companies with a positive environmental impact. Through investing, it aims to reduce the carbon intensity of economic activities and preserve biodiversity in the interests of a fair ecological transition. The company invests in waste, water, energy, mobility, housing, and agriculture/food sectors, while meeting the highest criteria in terms of impact and development. This includes GreenFin label, SFDR, "Article 9" fund, and compliance with the principles of European taxonomy.

Galia Gestion is one of the leading private equity firms in South-West France, helping regional companies to finance their expansion or buyout projects, through minority and majority investments. The team, based in Bordeaux and Toulouse, support managers in realising their development projects by providing skills, experience, and networks. Its portfolio comprises 40 companies in a wide range of sectors, including software, med-tech, electronics, distribution, agri-food, construction, and services.

As part of this transaction, Galia Gestion involved BRG Sud-Ouest Investissement, owned by Caisse d'Epargne Aquitaine Poitou-Charentes and Banque Populaire Aquitaine Centre Atlantique.

Famae Impact and Galia Gestion are investing in Novag to give the company capacity to ramp up its growth, pursue its development in new high-potential markets, and contribute to an active approach for soil protection and regeneration.