en.Wedoany.com Reported - Brazilian sugar giant Raízen continues to advance its asset sale plan as part of its R$65 billion out-of-court restructuring, announcing on Monday (July 20) the sale of the Caarapó sugar mill, located in Caarapó, Mato Grosso do Sul, to Adecoagro for R$760 million. The payment will be made on the closing date of the transaction, which is expected to take place on October 1 of this year.
The transaction includes industrial facilities, owned sugarcane fields, and supplier contracts related to the mill. During the 2025/2026 harvest season, the mill processed 3.5 million tons of sugarcane. In a statement filed with the Brazilian Securities and Exchange Commission (CVM), Raízen stated that the move aligns with its strategy to optimize its asset portfolio, simplify operations, and improve efficiency, with a focus on enhancing the profitability of its agricultural-industrial portfolio. The transaction is still subject to approval by the Administrative Council for Economic Defense (Cade).
The sugar mill was commissioned by Cosan in 2010, a year before Raízen was founded, with an initial investment of R$530 million. With the sale of the Caarapó mill, Raízen will no longer operate any sugar mills in Mato Grosso do Sul. Previously, in August 2025, the company sold the Rio Brilhante and Passa Tempo mills, located in Rio Brilhante in the same state, to Cocal Agroindústria for R$1.543 billion. Upon completion of the transaction, Raízen will operate 23 sugar mills with a total installed crushing capacity of approximately 69 million tons per harvest season.
Adecoagro also commented on the transaction in a statement filed with the U.S. Securities and Exchange Commission (SEC). Renato Junqueira Pereira, the company's Vice President of Sugar, Ethanol, and Energy, emphasized that the acquisition of the Caarapó mill is a "natural extension" of Adecoagro's operations in Mato Grosso do Sul. Located approximately 100 kilometers from the company's Angelica and Ivinhema mills in the same state, the mill will be integrated into its "cluster" strategy, leveraging shared infrastructure and management best practices to strengthen its low-cost production model and increase crushing capacity with limited incremental investment. The asset is expected to contribute positively to Adjusted EBITDA from day one, with operational synergies gradually unlocking benefits. Mariano Bosch, co-founder and CEO of the company, stated that this transaction will strengthen the company's sugar and ethanol platform and consolidate its position as a low-cost producer in the industry.
This transaction occurs against the backdrop of positive first-quarter results for Adecoagro's sugarcane operations. Although revenue from its sugar and ethanol segment fell by 6.1% (mainly due to a 61.9% drop in sugar sales), the segment's EBITDA grew by 36% during the period, reaching $40.6 million. This growth was driven by higher crushing volume (2.2 million tons), higher ethanol prices, and lower unit sales costs. Adecoagro noted that higher capacity utilization compared to the previous year helped expand operating margins.
