Adecoagro to Expand its S&E Cluster in Mato Grosso do Sul via Acquisition of Caarapó mill

Adecoagro S.A. has announced the acquisition of the Caarapó Mill from Raízen Group for R$760 million (approximately US$148 million). The deal, which is expected to close before October 1, 2026, will enhance Adecoagro's operations in the Sugar, Ethanol, and Energy sectors in Brazil. The acquisition includes the mill's sugarcane supply agreements and aligns with Adecoagro's strategic growth initiatives in the region of Mato Grosso do Sul.

The Caarapó Mill, located in the municipality of Caarapó, has a significant processing capacity, having handled approximately 3.5 million tons of sugarcane during the 2025/26 harvest season. This facility is poised to contribute to Adecoagro's existing production capabilities, which already include two other mills in close proximity—Angélica and Ivinhema. By integrating Caarapó into its operations, Adecoagro aims to optimize production efficiency and leverage shared infrastructure and management practices.

The acquisition is a strategic move for Adecoagro, reinforcing its position as one of the lowest-cost producers in the sugar and ethanol markets. The company has articulated a clear plan to unlock the full productive potential of the Caarapó Mill, projecting that the asset will be accretive to Adjusted EBITDA from day one. The integration of Caarapó is expected to create operational synergies that will enhance overall productivity while maintaining a low-cost production model.

This transaction comes at a time when the agriculture sector, particularly in Brazil, is experiencing increased demand for sugar and renewable energy sources. As global markets shift towards sustainable practices, Adecoagro's commitment to enhancing its production capabilities aligns with broader industry trends. The acquisition not only strengthens Adecoagro's operational footprint but also positions the company to capitalize on the growing demand for biofuels and renewable energy.

In summary, the acquisition of the Caarapó Mill by Adecoagro represents a significant step in the company's growth strategy within the agriculture sector. As the company integrates this new asset into its existing operations, it is well-positioned to enhance its competitive advantages and drive long-term value for shareholders. The successful completion of this transaction will likely have positive implications for Adecoagro's market standing and operational efficiency in the evolving landscape of the sugar and ethanol industries.