CMGP Group Positions for Growth with Strategic Acquisitions of CPCM and Increased Stake in Arosem
CMGP Group is substantially bolstering its position in the Moroccan market through the acquisition of CPCM and an expanding investment in Arosem, signaling a clear strategy for diversification and increased revenue. These moves are projected to drive ample growth and solidify CMGP’s leadership in key sectors.
The integration of CPCM is poised to make CMGP the leading operator in the Moroccan phytosanitary market, achieving a consolidated market share of nearly 23% and a combined turnover of approximately 740 million dirhams (excluding synergies), a substantial increase from CMGP’s previous 480 million dirhams in this segment. CMGP anticipates a total turnover of 500 million dirhams from CPCM in 2025, bringing the group’s consolidated turnover (excluding synergies) to nearly 3 billion dirhams.
A key advantage of the CPCM acquisition is its unique industrial capacity. As Younes Al Abadan, Deputy Managing Director of Finance and corporate Progress, highlights, “CPCM indeed brings a unique industrial capacity: it is the only local player to produce phytosanitary products in Morocco, a key asset in a market largely dominated by imports.” This local production capability will allow CMGP to combine the specialized offerings of its subsidiary Philea with CPCM’s generics,while simultaneously optimizing distribution networks and strengthening supplier relationships in Europe and Asia.Industrial synergies will focus on leveraging CPCM’s technical expertise to enhance local production, reduce supply costs, and consolidate sites and infrastructure.
Beyond phytosanitary products, CPCM provides CMGP access to new markets including the treatment of drinking and industrial water, and the supply of chemical products for industrial applications. These segments are expected to contribute 10-15% to the group’s overall turnover, furthering CMGP’s diversification strategy. Commercial synergies will expand the customer base and increase presence in rural and peri-urban areas, offering thorough solutions across the agricultural value chain, and capitalizing on CPCM’s established relationships in public procurement, especially with ONEE.
Financially, the CPCM acquisition is being funded with 700 million dirhams in debt, supplemented by equity, maintaining a controlled accounting gearing of around 37%.CMGP retains financial flexibility for potential future operations, with the possibility of seeking market funding for larger opportunities.
Alongside the CPCM integration, CMGP is also increasing its stake in Arosem. Having acquired an initial stake in 2024, the group plans to raise its ownership from 40% to 70% by the end of the year. Arosem is experiencing rapid growth, achieving a turnover of 74 million dirhams in the first half of 2025 - equivalent to its entire 2024 revenue. Full-year revenue for arosem is projected to reach 114 million dirhams in 2025,with a net result of 17 million dirhams,up from 11 million dirhams in 2024. Management anticipates continued rapid growth for this subsidiary in the medium term.
The successful integration of both CPCM and arosem is identified as a key challenge for the 2026-2027 financial years, with a focus on activating synergies across operational, industrial, commercial, and sourcing functions.
