About This Deal

Adecoagro S.A. acquired Caarapo Mill for R$760 million (approximately US$148 million), subject to adjustments, payable in cash upon closing, a transaction announced in July 2026, structured as all cash. The deal was a Asset purchase (sugar & ethanol mill).

Caarapo Mill operates in Sugar, Ethanol & Energy, is based in Caarapo, Mato Grosso do Sul, Brazil (~100 km from Adecoagro's Angelica and Ivinhema mills). Adecoagro agreed to acquire the Caarapo Mill from the Raizen Group, in the municipality of Caarapo, Mato Grosso do Sul, Brazil, including owned sugarcane and sugarcane supply agreements. The mill processed approximately 3.5 million tons of sugarcane in the 2025/26 harvest and can produce sugar, hydrous and anhydrous ethanol, and renewable energy. Located roughly 100 km from Adecoagro's Angelica and Ivinhema mills, it will be integrated into the company's Mato Grosso do Sul cluster. Closing is subject to approval by Brazil's antitrust authority (CADE) and was expected before October 1, 2026.

Management described the mill as a natural extension of Adecoagro's existing industrial footprint in Mato Grosso do Sul: geographic proximity lets it be folded into the existing cluster, processing excess cane while sharing infrastructure, management and best practices to grow crushing volume with limited incremental investment.

Adjacent to Adecoagro's existing cluster, expected to be accretive to Adjusted EBITDA from day one with synergy upside as it integrates a three-mill cluster in the same region. Shared infrastructure, management and best practices across a three-mill Mato Grosso do Sul cluster; absorbs excess cane; low incremental capital to raise crushing volume. Adecoagro Sugar, Ethanol and Energy business (Mato Grosso do Sul cluster with Angelica and Ivinhema)

Deal Terms

Acquirer
Adecoagro S.A.
Target
Caarapo Mill
Value
R$760 million (approximately US$148 million), subject to adjustments, payable in cash upon closing
Date
July 2026
Type
Asset purchase (sugar & ethanol mill)
Status
Ready

Transaction Details

Target HQ
Caarapo, Mato Grosso do Sul, Brazil (~100 km from Adecoagro's Angelica and Ivinhema mills)
Segment
Sugar, Ethanol & Energy
Structure
All cash
Announced
July 20, 2026
Synergies
Shared infrastructure, management and best practices across a three-mill Mato Grosso do Sul cluster; absorbs excess cane; low incremental capital to raise crushing volume.

In Their Words

We view the acquisition of Caarapo as a natural extension of our current industrial footprint in Mato Grosso do Sul. Given its geographic proximity, the mill will be integrated into our Cluster strategy, allowing us to process additional sugarcane - including excess cane from our existing operations - while leveraging shared infrastructure, management, and best practices to replicate our competitive advantages, reinforce our low-cost production model, and meaningfully grow Caarapo's crushing volume with limited incremental investment.Renato Junqueira Pereira, VP Sugar, Ethanol & Energy, Adecoagro
We are very pleased with this transaction. Acquiring Caarapo will allow us to strengthen our S&E platform, while reinforcing our position among the lowest-cost producers in the industry.Mariano Bosch, Co-Founder & CEO, Adecoagro

Advisors

Advisory firms were not disclosed for this transaction.

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Sources: Press release ↗

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