Harvard's agricultural fund Solum Partners is set to acquire Projar, a specialist in soilless cultivation substrates, after winning a shareholder search process
Executive summary: Solum Partners won the shareholder search process for Projar, positioning itself to acquire the substrate company. The transaction could consolidate the soilless cultivation substrates sector and expand Harvard's agribusiness investments.
Who is involved: Solum Partners (Boston), Harvard's agricultural fund, Projar, and previously EY (which had been engaged to find a buyer).
Likely next: Parties will negotiate a definitive purchase agreement, subject to due diligence and any required regulatory approvals.
Solum Partners, the investment vehicle that manages Harvard University’s agricultural fund, has been selected as the winning bidder in the shareholder search process for Projar, a Spanish‑based producer of soilless cultivation substrates. Projar had engaged the advisory firm EY to run a competitive sale process, and after reviewing offers, Solum Partners emerged as the preferred partner. The transaction will give Solum Partners control of a company that specializes in substrates used for hydroponic and vertical farming systems, a niche that has grown alongside the expansion of controlled‑environment agriculture. The deal underscores a broader trend of consolidation within the hydroponic substrates sector, as larger investors look to acquire specialized technology providers to scale production and improve supply chain efficiency. For Harvard’s agricultural fund, the acquisition aligns with its strategy of adding upstream agribusiness assets that complement its existing farmland and commodity investments. Because the announcement did not disclose financial terms, valuation multiples, or any regulatory approvals required, the near‑term outlook will depend on how quickly the parties finalize the purchase agreement and integrate Projar’s operations into Solum Partners’ portfolio.
What's next — scenarios
Aggressive Roll-Up Strategy (50%)
Projar will aggressively acquire smaller European substrate and hydroponic competitors, forcing independent suppliers to merge or lose market share.
- Announcement of subsequent bolt-on acquisitions by Solum Partners within 6 months
- Public statements from Projar management regarding geographic expansion
Operational Integration and R&D Focus (35%)
Harvard capital will be directed inward to scale Projar's manufacturing capacity and proprietary peat-free substrates, driving up pricing pressure for commodity alternatives.
- Capital expenditure announcements focused on manufacturing facilities
- Launch of new proprietary sustainable substrate product lines
Stalled Integration and Divestment (15%)
Cultural or strategic friction between institutional fund management and the family-owned Projar structure leads to stagnation, creating an opening for competitors.
- Key executive departures from Projar post-acquisition
- Lack of new strategic initiatives or capital deployment over the next two quarters
What to watch
- Finalization of the acquisition paperwork and regulatory approvals in the next 30 days
- Any announcements regarding leadership changes or retention of Projar executives over the next 60 days
- Signs of new capital injection or facility expansion announcements in Q3 2024
Timeline
- — El fondo agrícola de Harvard negocia la compra de Projar (Expansión)
- — El grupo de sustratos Projar encarga a EY buscar un comprador (Expansión)
Analysis — what this means
Sectors affected
- soilless cultivation substrates (hydroponics)
Historical parallels
- Projar hired EY to seek a buyer in June 2026