Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Tonon Agrees to Buy Sugar And Ethanol Producer Paraiso

Don't Miss Out —
Follow us on:

(Corrects to say Paraiso owns one mill and that Amyris produces farnesene in third paragraph of story originally published March 21.)

March 21 (Bloomberg) -- Tonon Bioenergia SA, a Brazilian sugar and ethanol producer, will expand sugar-cane capacity by almost half after it agreed to buy Paraiso Bioenergia SA.

Tonon will pay for the acquisition mostly with existing shares, the Bocaina, Brazil-based company said in a statement posted on its website. The company didn’t disclose how much it paid for the deal. The Pinheiros family, owner of Paraiso, will take a 7 percent stake in Tonon, according to the statement.

The acquisition will boost sugar-cane crushing capacity to about 8.2 million metric tons, from 5.7 million tons now, Tonon said. Paraiso owns a mill and is a supplier of sugar-cane syrup to Emeryville, California-based Amyris Inc, which produces farnesene, a renewable hydrocarbon fuel, in Brazil.

In January, Tonon sold $300 million in bonds due in 2020 with a coupon of 9.25 percent, according to data compiled by Bloomberg.

To contact the reporter on this story: Lucia Kassai in Sao Paulo at lkassai@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net