Home » Businesses For Sale » Petroleum & Coal Products » Connecticut » Listing BFS-178741

Large Ethanol Production Facility

A well established private equity group is seeking a strategic partner to assist in the funding of the acquisition of one of the largest sugar/ethanol mills in South America at very favorable terms. Due to a series of operational challenges and to poor capital market conditions, the current ownership filed for Judicial Recovery under Brazilian law on May 19, 2009. The subject ethanol production facility is the flagship plant of a conglomeration of five facilities.


This flagship facility contributes the largest crushing capacity and profits. Recognizing that fact, under its Judicial Recovery filing, the ownership group has indicated its interest in selling the this operation. It has indicated a target sales price of +/- US$164 million. The actual transaction price may vary from this number and it is believed that the actual selling price will be in the range of $65 million plus assumed liabilities.

The facility's current annual crushing capacity of sugarcane is 3.2 million metric tons translating into an asking price of approximately US$51 of Enterprise Value (“EV”) per ton. The facility currently has storage capacity of up to 360,000 50kg bags of sugar and 40 million liters of ethanol.

The total funding for the facility, including the purchase consideration that will be offered, fee expenses, working capital and capital expenditures is expected to be in the range of US$110 to US$130 million.

The total funding will include US$10 million in working capital as well as significant capital to upgrade the agricultural, industrial and logistic components of the facility's operation. These investments are expected to lead to a significant increase in the volume of cane processed, to improvements in the mills’ uptime and to the overall productivity of the company. The capital raised does not include the necessary resources to develop cogeneration capabilities.

Additional financial information is available upon request.