In Brazil, Biosev, a sugar and ethanol company owned by Louis Dreyfus Company, agreed to sell the Giasa mill to M&N Participações S/A, the parent company of the Olho D’Água Group, for R$ 70 million, or about $18.7 million, making it one of the largest in the Brazilian sugar and ethanol industry.
Biosev sold the mill, which has an annual milling capacity of 1.2 million tons of sugarcane, in an effort to lower its debt and includes “The transaction includes biological assets – comprised of approximately 8,000 hectares of sugarcane – and the assets, with industrial facilities, agricultural equipment and real estate of the unit located in the municipality of Pedras de Fogo (PB),” according to ISTOE.
“The realization of this business is in line with our operational competitiveness program, which includes the strategic review of our asset portfolio. The sale of Giasa will contribute to the company gaining more efficiency and improving the cash generation, directing our focus to the units with greater operational synergy,” Juan José Blanchard, president of Biosev told ISTOE.
This news comes after Biosev’s CEO, Juan José Blanchard, told Reuters last week that Biosev is open to market opportunities, including the potential sale of additional mills.