French food ingredients giant Tereos today (29 March) announced plans to shake up its international operations with the creation of a subsidiary listed in Brazil.
Tereos plans to merge its European cereal operations with its Indian Ocean sugar cane assets and its Brazilian-listed subsidiary Açucar Guarani to form a business generating US$2.5bn in sales.
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The new company, called Tereos Internacional and to be based in Sao Paulo but listed in Brazil and France, would have pro-forma annual EBITDA of $366m.
Tereos is hoping the business will play “a leading role” in the sugar, starch and biotech industries and serve food and beverage, animal nutrition and pharmaceutical customers.
Tereos chairman Philippe Duval said: “Over the past decade, Tereos has become a major player in the sugar and ethanol industry in Brazil and the starch business in Europe. Today, by combining these activities in a new company that will have strong presence in Brazil and in Europe, we are taking a decisive new step to accelerate our growth strategy.”
Duval added: “This combination will allow us to be a key actor in the rapidly-consolidating food ingredients and bio-energy industries and will position us to be able to conquer new markets.”
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By GlobalDataThe French group owns a 69% stake in Guarani but its plans envisage the Brazilian firm’s other shareholders merging their stake into Tereos Internacional.
Guarani CEO Jacyr Costa Filho said the plans demonstrate Tereos’s “strong belief in Brazil’s potential”.
“The creation of Tereos Internacional is a transforming move that will provide us with additional resources and an improved balance-sheet to continue to grow in Brazil and create a stronger and more resilient company with access to new markets. I am confident that Tereos Internacional will create value for Guarani’s shareholders,” Filho said.
