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Adecoagro to Acquire Caarapó Mill for R$760 Million

South American sustainable producer Adecoagro has signed a definitive agreement to purchase the Caarapó sugar and ethanol mill from the Raízen Group. The R$760 million cash deal, expected to close by October 1, 2026, marks a significant expansion of the company’s industrial cluster in the Brazilian state of Mato Grosso do Sul.

Adecoagro to Acquire Caarapó Mill for R$760 Million

The facility, located just 100 kilometers from Adecoagro’s existing Angélica and Ivinhema plants, processed 3.5 million tons of sugarcane during the 2025/26 harvest. By absorbing the new asset into its regional cluster, the firm intends to leverage shared management and infrastructure to boost crushing volumes while maintaining its low-cost production model. Renato Junqueira Pereira, Vice President of the Sugar, Ethanol and Energy division, noted that the proximity of the mills allows for immediate operational integration and the efficient processing of excess sugarcane from current operations.

CEO Mariano Bosch stated the acquisition strengthens the company’s platform and is expected to be accretive to Adjusted EBITDA upon closing. The transaction currently awaits approval from the Brazilian Administrative Council for Economic Defense (CADE). Once finalized, the integration will combine three regional mills under a unified management strategy, designed to replicate the company's existing production efficiencies and unlock further productive potential at the Caarapó site.

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