Adecoagro completes Caarapó mill acquisition from Raízen for R$705 million
Adecoagro completed its purchase of Raízen’s Caarapó sugar and ethanol mill for R$705 million, 7% below the initially announced amount. The company plans to raise crushing at the Mato Grosso do Sul facility from 3.5 million tonnes in 2025/26 to 4.5 million tonnes in 2027.
Final price comes in below the announced amount
Adecoagro has completed the acquisition of the Caarapó sugar and ethanol mill from Raízen Group after satisfying the conditions in the purchase agreement and securing the required regulatory approvals. The plant in Mato Grosso do Sul is now operating under Adecoagro’s ownership and management.
The final purchase price was R$705 million, equivalent to approximately US$136 million, paid in cash at closing. Globo Rural reported that the amount was 7% below the price initially announced. When the agreement was disclosed on July 20, 2026, Exame valued the transaction at an estimated R$760 million, including the transfer of Raízen’s sugarcane and contracts with suppliers connected to the unit.
Adecoagro targets higher cane throughput
Caarapó crushed 3.5 million tonnes of sugarcane during the 2025/26 harvest. On that basis, Adecoagro calculated an acquisition cost of approximately US$39 per tonne of crushing capacity. The mill has installed capacity to process about 6 million to 7 million tonnes of cane annually, leaving substantial room to increase utilization.
Adecoagro expects Caarapó to crush 4.5 million tonnes in 2027, an increase of 1 million tonnes from the 2025/26 volume. The company plans to achieve that level by redirecting excess sugarcane from its existing operations. The facility is located about 100 kilometres from Adecoagro’s Angélica and Ivinhema mills, supporting its plan to manage the three assets as an integrated regional cluster.
Integration focuses on costs, energy and commercial flexibility
Renato Junqueira Santos Pereira, vice-president of Adecoagro’s Sugar, Ethanol and Energy business, said the company would initially extend the harvest season at Caarapó and ultimately seek to move towards a continuous-harvest model. Adecoagro also intends to improve industrial efficiency, asset utilization and the amount of energy exported per tonne of cane while applying agricultural practices already used at its other operations.
The company will use its existing general and administrative structure to manage the acquired mill. It also expects additional storage, greater commercial flexibility and a larger integrated platform to dilute cash costs. Adecoagro projects that its Mato Grosso do Sul cluster will crush 17 million tonnes in 2027. Caarapó can produce sugar, hydrous ethanol, anhydrous ethanol and renewable electricity, giving the group flexibility across sweetener, fuel and power markets.
For Raízen, the disposal forms part of a strategy to optimize its asset portfolio and simplify operations. Exame reported when the deal was announced that Raízen would retain 23 mills with installed crushing capacity of approximately 69 million tonnes per harvest after completion. The publication also said the sale came while Raízen was in an out-of-court restructuring process covering more than R$65 billion of debt. The transaction therefore combines Adecoagro’s expansion in Mato Grosso do Sul with Raízen’s effort to streamline its agro-industrial portfolio.
