Belgian Company, controlled by France’s Avril, cut the deal for an undisclosed amount
10/01/2024 01:47 PM Atualizado 01/10/2024
Oleon, a Belgian subsidiary of the French group Avril and a global leader in natural-based oleochemicals, has finalized the purchase of Brazil’s A. Azevedo Oils, a prominent manufacturer of vegetable oils and its products—particularly those derived from castor beans. The companies did not disclose the transaction amount but noted that the family that previously owned A. Azevedo will retain a significant minority stake.
This acquisition marks Oleon’s entry into the Brazilian market, aligning with its strategy for global expansion and sustainable growth. A. Azevedo, which was advised by IGC Partners during the sale process, has an annual revenue of $80 million and employs 250 people. It will now be part of a company that generates €1 billion annually, with 1,200 employees and manufacturing facilities in seven countries, including Brazil.
The Brazilian company can produce 75,000 tonnes of vegetable oils per year, primarily from palm, soy, and especially castor beans. Its products serve as raw materials for cosmetics, packaging, fertilizers, cleaning products, and paints. Some of its production, carried out in its 30,000-square meter industrial facility in Itupeva, São Paulo, is already exported to the United States, France, and Latin American countries such as Argentina, Chile, Colombia, and Peru.
Oleon CEO Moussa Naciri said the acquisition gives Oleon access to the South American market, while the Brazilian company gains the opportunity to enter new markets.
“We can use A. Azevedo as a platform to develop Oleon in South America. And we can leverage Oleon to enable A. Azevedo to grow internationally,” Mr. Naciri said, adding that products related to the castor bean supply chain are “extremely important” in various applications.
Mr. Naciri cited examples such as automotive oils used in several vehicles in Europe, as well as pharmaceutical and cosmetic products. “We take these natural materials and transform them into high-value solutions,” he said, adding that while environmental discussions are relevant, Oleon’s products are competitive without subsidies. “We are in the market not just because we are green. We are there because we provide functionalities that are crucial for the product,” he said.
The Avril group, which controls Oleon, is the fifth largest agricultural group in France, operating in 19 countries, with annual revenues of €8 billion and 8,000 employees. Avril CEO Jean-Phillippe Puig noted that the company is managed through a fund created by farmers who still control the company, aiming to increase the group’s annual earnings by €200 million by 2030.
*By Rafael Rosas — Rio de Janeiro
Source: Valor International