Raízen sells Caarapó Sugar and Ethanol Mill to Adecoagro for US$149.3M
Raízen has agreed to sell its Caarapó sugar and ethanol mill to Adecoagro, advancing its asset divestment strategy to reduce debt and simplify operations.
BRAZIL – Raízen has agreed to sell its Caarapó sugar and ethanol mill in Mato Grosso do Sul to Adecoagro in a transaction valued at an estimated R$760 million (US$149.3M), as the Brazilian bioenergy company continues its strategy to reduce debt and streamline operations.
The transaction includes the transfer of the Caarapó mill, along with sugarcane cultivation and supplier contracts associated with the facility. Upon completion, Raízen, a joint venture between Cosan and Shell, will operate a portfolio of 23 mills with an installed sugarcane crushing capacity of approximately 69 million tonnes per harvest.
The sale forms part of Raízen’s broader asset disposal programme launched in 2025. Including the Caarapó transaction, the company has agreed to divest assets worth approximately R$12.7 billion (US$2.49B).
Of that amount, around R$5 billion (US$982.2M) has already been completed, while the remaining transactions are in the final stages of execution, primarily linked to the sale of its fuel refining and marketing assets in Argentina.
Raízen said the divestment strategy is aimed at reducing debt and lowering “operational complexity” as the company works to strengthen its financial position.
The company has faced significant financial challenges over the past year. In March, Raízen initiated an out-of-court debt restructuring process to reorganise approximately R$65 billion (US$12.77M) in liabilities.
During the 2025/26 fiscal year ended March 31, it reported a net loss of R$27.1 billion (US$5.32B), largely driven by impairment charges totalling R$22.5 billion. Net debt increased 69.9% year-on-year to R$58.2 billion, while its leverage ratio, measured as net debt to EBITDA, rose to 5.2 times.
According to Citi, the proceeds from the Caarapó sale represent a positive step toward simplifying Raízen’s operations and optimising its asset portfolio. However, the bank noted that the transaction alone is “not enough to meaningfully cut leverage or rebalance the company’s capital structure.”
Since 2025, Raízen has completed the sale of the Leme, Rio Brilhante, Passatempo and Continental mills, as well as the agricultural assets and contracts of the Santa Elisa mill.
The company has also divested Raízen Power Comercializadora de Energia, its Raízen GD solar business and fuel refining and marketing operations in Argentina.
For Adecoagro, the acquisition will increase its sugarcane processing capacity by 24% to 17.7 million tonnes. The company said the purchase will “strengthen its presence in the sugar and ethanol sector by creating a more integrated, competitive hub with greater growth potential in the region.”
The transaction remains subject to approval by Brazil’s Administrative Council for Economic Defense (Cade) and the fulfilment of customary closing conditions.
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