Shri Renuka Sugars acquires Brazilian VDI

Shri Renuka Sugars has acquired "Vale Do Ivai S.A Acucar E Alcool (VDI)", a Brazilian sugar and ethanol production company. The acquisition includes two sugar and ethanol production facilities located in the southern state of Parana with a combined cane crushing capacity of 3.1 mn tonnes per annum. In addition, VDI holds strategic stakes in several logistics assets including terminals for staoarge and loading of sugar and ethanol at the port of Paranagua. Larger part of the sugarcane requirements at VDI are met through its own cultivation of more than 18,000 hectares of land on long lease.

VDI has an enterprise value of $240 mn. Shree Renuka will acquire 100 per cent of the equity capital of VDI for approximately $82 mn and the balance is assumed debt which is to be repaid over 8 years. The acquisition has received approval of leading creditors of VDI and other remaining conditions are expected to be completed over next 45 days. Motilal Oswal Investment Advisors was the strategic advisor to Shree Renuka for the deal.