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Lavoro Limited Completes Business Combination With TPB Acquisition Corp I

Lavoro Limited begins trading on NASDAQ

Lavoro Limited, Brazil’s most prominent agricultural inputs retailer, has completed its previously announced business combination with TPB Acquisition Corporation I. The newly combined company, Lavoro Limited, will begin trading on the Nasdaq Stock Market under the ticker symbols “LVRO” and “LVROW” for ordinary shares and warrants, respectively, starting March 1, 2023. The current Lavoro management team, led by Chief Executive Officer Ruy Cunha, will continue to oversee the combined company’s operations.

Lavoro’s Board of Directors comprises seven members, including three independent directors. By acquiring over 20 small- and medium-sized companies, the São Paulo-based retailer has rapidly become Brazil’s most prominent agricultural inputs retailer in revenue and market share. Lavoro provides farmers with a comprehensive portfolio of agricultural input products, such as seeds, fertilizer, crop protection, emerging biologics, and other specialty products. For example, crop Care, Lavoro’s vertically integrated crop inputs business, is a significant supplier of biologics and specialty fertilizers in Brazil.

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In the fiscal year 2022 alone, Lavoro generated R$8.2 billion in pro forma revenue and R$151.3 million in pro forma net income. In addition, the company’s revenue grew at a compounded annual growth rate of 69% between 2020 and 2022, including 23% and 14% year-over-year organic growth in fiscal years 2021 and 2022, respectively.

Lavoro has raised approximately $134.4 million in gross proceeds, which includes the $100 million contribution that TPB invested through a private placement at $10.00 per share. The company plans to use the funds for investment activities and growth initiatives, such as organic expansion, acquisitions, new sustainable products, and the expansion of operations throughout Latin America.

Barclays Capital Inc., Canaccord Genuity LLC, Stifel, Nicolaus & Company, Incorporated, Cooley LLP, Davis Polk & Wardwell LLP, and White & Case LLP acted as advisors for the transaction. With the completion of the business combination, Lavoro Limited is poised to continue its success and expansion in the Brazilian agricultural inputs market.

Photo by Tiago Araújo on Unsplash 

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