Latam Agribusiness: Adecoagro to buy Raizen’s mill under divestment plan; attractive deal for Adeco

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Latam Agribusiness: Adecoagro to buy Raizen’s mill under divestment plan; attractive deal for Adeco

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Latam Agribusiness

Adecoagro to buy Raizen’s mill under

divestment plan; attractive deal for Adeco

Merger Acquisition Divestiture

Deal valued at U$148mn, implying below average multiple 20 July 2026

Raízen and Adecoagro announced a definitive agreement for the sale and purchase of Equity

the Caarapó mill in Mato Grosso do Sul, including its industrial assets, owned sugarcane Latin America

fields, and third-party cane supply agreements. The mill processed 3.5mn tons of cane in Food-Commodities

the 2025/26 season, compared with an installed capacity of ~7mn tons, and is Isabella Simonato >>

strategically located about 100km from Adecoagro’s Angélica and Ivinhema mills. Research Analyst

Adecoagro will pay R$760mn (US$148mn) in cash for the assets, implying an enterprise Merrill+55 11Lynch2188 (Brazil)4243

value of US$42.4 per ton of cane crushed, which is below recent mill transactions at an isabella.simonato@bofa.com

average valuation of US$52.3/ton. The transaction is expected to close before October Julia Zaniolo >>

Research Analyst

1st, 2026, subject to regulatory approvals and closing adjustments. Merrill Lynch (Brazil)

+55 11 2188 4367

Accretive deal for Adeco as asset utilization picks-up julia.zaniolo@bofa.com

Fernando Olvera >>

We believe the transaction is potentially accretive for Adecoagro with a positive NPV of Research Analyst

US$1.3/sh. The acquisition will increase its installed crushing capacity by nearly 50% to Merrill Lynch (Mexico)

+52 55 5201 3473

~21mn tons, with potential synergies given Adecoagro’s cane surplus and continuous- folvera@bofa.com

harvest operating model. Following years of investment in cane development, Adecoagro