Key Takeaways
- Adecoagro has agreed to acquire the Caarapó Mill in Mato Grosso do Sul, Brazil, from Raízen Group for approximately R$760 million (about US$148 million) in cash.
- The mill processed roughly 3.5 million tons of sugarcane during the 2025/26 harvest and sits about 100 km from Adecoagro's existing Angélica and Ivinhema mills.
- Caarapó will be folded into a three-mill regional cluster, sharing infrastructure and management to grow crushing volume with limited additional investment.
- Adecoagro expects the acquisition to be accretive to Adjusted EBITDA from day one, with further upside as it integrates the mill's operations.
- Closing is subject to approval from Brazil's antitrust regulator, CADE, and is expected before October 1, 2026.
Adecoagro to Acquire Caarapó Mill in Mato Grosso do Sul
Adecoagro (NYSE: AGRO) has entered into an agreement with Raízen Group to acquire the Caarapó Mill in the State of Mato Grosso do Sul, Brazil, including its owned sugarcane and sugarcane supply agreements. The transaction is valued at approximately R$760 million (about US$148 million), subject to adjustments, and will be paid in cash at closing. During the 2025/26 harvest season, the mill processed approximately 3.5 million tons of sugarcane. Adecoagro said the deal is aligned with its strategy of expanding its footprint in the region.
Caarapó Fits Into the Regional Cluster Strategy
The Caarapó Mill sits in the municipality of Caarapó, roughly 100 km from Adecoagro's Angélica and Ivinhema mills, and has the capacity to produce sugar, hydrous and anhydrous ethanol, and renewable energy. The company plans to integrate the mill into its existing cluster strategy in the region, processing additional sugarcane, including excess cane from its current operations, while sharing infrastructure and management across the three sites.
Deal Terms and Next Steps
The transaction remains subject to approval by Brazil's Administrative Council for Economic Defense (CADE) and other customary closing conditions. Adecoagro expects the deal to close before October 1, 2026, after which Caarapó will become part of its Sugar, Ethanol and Energy business.
Adecoagro Leaders on the Acquisition
“We view the acquisition of Caarapó as a natural extension of our current industrial footprint in Mato Grosso do Sul,” said Renato Junqueira Pereira, Adecoagro's VP of the Sugar, Ethanol and Energy business. “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 Caarapó's crushing volume with limited incremental investment.”
“We are very pleased with this transaction,” said Mariano Bosch, Co-Founder and Chief Executive Officer of Adecoagro. “Acquiring Caarapó will allow us to strengthen our S&E platform, while reinforcing our position among the lowest-cost producers in the industry.”
