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.