Brazil’S Camil Expands Reach With Strategic Acquisition In Paraguay
(MENAFN- The Rio Times) Camil, Brazil's rice processing giant, has boldly expanded internationally, now owning 80% of Paraguay's Villa Oliva Rice.
Luciano Quartiero, Camil's (CAML3) president and family member, made this indirect purchase on Thursday.
Founded in 2010, Villa Oliva Rice has rapidly grown into an agricultural powerhouse. The company impressively produces about 70,000 tons of rice each year.
Quartiero first bought Villa Oliva's operational aspects, including farms and related assets. This clever move aligns perfectly with Camil' global growth plans.
It also cleverly navigates Paraguayan laws on foreign ownership of border-area farmland. Quartiero will later sell the industrial operations to Camil, seamlessly integrating them.
Interestingly, this deal doesn't require shareholder approval under Corporation Law. It falls below the threshold for such requirements.
This acquisition clearly shows Camil's determination to strengthen its position beyond Brazil's borders.
Moreover, it highlights the complex planning needed for cross-border agricultural investments.
Camil has skillfully maneuvered through legal and strategic challenges. This move sets a strong foundation for future international growth.
Background
Camil saw a 22.6% rise in net profit for Q1 2024, reaching R$78.5 million ($14.40 million).
EBITDA climbed 28.2% to R$254.5 million ($46.69 million). Net revenue was up 9% from the previous year to R$2.9 billion ($532.11 million), with significant gains in grain volumes.
Despite El Niño effects and regional flooding, production was unaffected. The premium segment grew by 13.7%, highlighted by the successful launch of Camil's pasta line in São Paulo.
Brazil's Camil Expands Reach with Strategic Acquisition in Paraguay
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