Tonon Agrees to Buy Sugar And Ethanol Producer Paraiso

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.

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