France’s Unibel acquires 35 percent of Biomass

FFA Private Bank arranged capital increase by local organic food producer eyeing expansion

Biomass Holding, a Beirut-based organic foods manufacturer, said it has raised its capital by selling 35 percent of its shares to French Holding Company Unibel.

Mario Massoud, business development manager at Biomass said: “We proposed selling the stake to Unibel due to our strong relations with it.” He said the contract was signed two weeks ago, following six months of effort to increase its capital: “Biomass has spent the last two years developing local, regional and international collaborations and partnerships to expand its activity in supplying the Lebanese market with certified organic products.”

Massoud said the acquisition is part of the company’s expansion plan and falls within its efforts to cope with the rapid growth of its operations. The capital will allow Biomass to continue its development and expansion across product lines and regional markets. “We are planning to upgrade our factories and machines to boost the production and expand our markets abroad,” he said.

Biomass was founded by Joseph Massoud in 2009. The company produces and markets organic fruits, vegetables, dairy products, grains, and spices. In 2011 Biomass launched an organic dairy products factory in Qab Elias. Unibel is the holding company of Bel Group, which produces and distributes brands of cheese, such as La vache qui rit.

Massoud said that Unibel will be taking part in strategic decisions: “We will benefit from Unibel’s experience in dairy production, and in marketing strategies. Unibel will benefit from our experience in organic products.”

FFA Private Bank acted as Biomass’ financial advisor on the transaction. “FFA Private Bank conducted all the financial and marketing studies on market potential for organic products, the size of demand, and the interest in organic products in Lebanon and the region,” said Massoud.

Julien Khabbaz, head of investment banking at FFA said: “The organic products market is growing rapidly in Lebanon and in the region. It became a trend, especially that people nowadays are more aware about their health.”

Khabbaz said Biomass and Unibel have intersecting strategies: “Biomass raised its capital to expand its operations, and Unibel has a strategy to expand in the Middle East.” He said Biomass will offer the French group a safe bridge to cross to other Arab companies.


Reported by Rania Ghanem