Jalles Machado signed today a contract for the acquisition of the Santa Vitória Açúcar e Álcool Ltda mill, controlled by the Geribá Investimentos Group. The R$704.86 million transaction also includes the acquisition of ERB MG Energias S.A. (Cogen ERB), Santa Vitória’s energy cogeneration unit, with an installed capacity of 41.4 MW.

Inaugurated in 2015 and located between the towns of Santa Vitória and Perdilândia, in the region of Pontal do Triângulo Mineiro, State of Minas Gerais, the Santa Vitória mill has a modern industrial park, with only seven years of operation and a milling capacity of 2.7 million tons of sugarcane per harvest.

The industrial plant has a production capacity of more than 240.0 million liters of hydrous ethanol (fuel) per harvest.  The mill has an Industrial Park of 210 hectares, approximately 37.6 thousand hectares of cultivated area with its own cane, and is one of the largest employers in the region, with about 1,400 direct jobs.

The transaction is part of Jalles’ expansion plan, which began with its IPO on the stock exchange in February 2021. The IPO enabled new investments for the Company’s growth and perpetuity.

“With the IPO of Jalles, the acquisition of this third unit was one of our goals, and the completion of the deal demonstrates our commitment to our shareholders and the company’s results. Thus, we gain scale and space to grow in another region, with a favorable location for exports, closer to the port of Santos, making the company more competitive. Minas Gerais is a state that has encouraged companies in our industry,” says the CEO of Jalles Machado, Otávio Lage de Siqueira Filho.

After the conclusion of the deal, Jalles Machado will have three industrial units, with a combined capacity to process 8.5 million tons of sugarcane per harvest, of which 2.7 million in Santa Vitória, 3.3 million in the Jalles Machado Mill, and 2.5 million in the Otávio Lage Mill.

The closing of the transaction depends on the implementation of conditions precedent usual for transactions of this nature, as established in the contracts.

The transaction had the legal advice of the Pinheiro Neto Advogados law firm and the technical advice of FG/A. “We thank all those involved who made the negotiation possible and also the Geribá Investimentos Group for their trust,” added Otávio Lage Filho.

About Jalles

Jalles Machado was founded in 1983 by Otávio Lage de Siqueira, in Goianésia, Goiás. Throughout its history, it has diversified its production, invested in sustainable practices and in people, and is currently a reference in quality, environmental preservation, and social responsibility, besides exporting to more than 20 countries.

The company employs around 3,800 direct employees and produces ethanol (hydrous, anhydrous, organic, and industrial), conventional and organic sugar, yeast, electricity, and hygiene and cleaning products, such as alcohol 70. In the 2021/22 harvest, Jalles processed 5.4 million tons of sugarcane, the largest harvest in its history.