ECB Group acquires Petrobras Biocombustível stake in BSBIOS
Petrobras Biocombustível (PBIO) announced on Wednesday (23/12) the sale of its 50% equity interest in BSBIOS Indústria e Comércio de Biodiesel Sul Brasil to its partner in the company, RP Biocombustíveis, which owns the other 50 % of BSBIOS and is controlled by the ECB Group. The decision is in line with Petrobras` strategy of repositioning its portfolio. PBIO and R.P Biocombustíveis were partners since 2009 in the company, which today is a leader in the production of biofuels in Brazil.
The amount attributed to 100% of BSBIOS was R$ 1.235 billion on the base date of November 30, 2020. With deductions from net debt and other price adjustments, the net amount received by PBio (50% from BSBIOS) was from approximately R$ 322 million. The transaction is now awaiting approval by the Administrative Council for EconomicDefense (Cade).
The closing of the contract was commented by the founder and CEO of the ECB Group, Erasmo Carlos Battistella: “This moment represents the realization of another stage of a dream”, Said the president of the business group, which now assumes 100% control of BSBIOS. “I am pleased to have Petrobras Biocombustível as a partner, with whom we overcame challenges and had victories. It was a period of good relationship and mutual respect, I am grateful to the entire PBIO / Petrobras team that was together in this story and I am happy that the conclusion was made with the achievement of profitability for the partner.
Now we will continue to grow, as we are sure that the fuel of the future is green ”, headded.
Battistella highlights that the dream of creating a large renewable energy company was born 15 years ago and has always focused on innovation, the development of new Technologies and with the primary desire to build a sustainable future for the next generations. “Our commitment is to build a legacy through biofuels, through the development of a cleaner and sustainable economy,” explained he, who is now considered one of the most important leaders in Brazilian agribusiness.
\"I would like to give a special thanks to the entire BSBIOS team that made it possible to build this incredible story,\" said Battistella. “We also have the strong supporto four business partners, who helped us to become the market leader. Now we are going to stay strong, over coming the new stages of this business journey ”, he concluded.
Battistella Said that, together with his team, he is building a new Strategic Planning for BSBIOS, to be released after the deal is approved at Cade.
R.P. Biocombustíveis and Petrobras formed a successful partnership that lasted 11 years and gave rise to a leading company in the biodiesel market in Brazil. The good relationship was driven by a governance model governed by a shareholders` agreement, with an active board of directors for making strategic decisions. During this period, several good management practices were adopted with a view to controlling operations and continuously improving processes (see details in the BSBIOS Sustainability Report).
A 15 year history
BSBIOS wasfoundedonApril 15, 2005 with the purpose of producing biodiesel, installing a modern industry strategically located in Passo Fundo (RS), close to the production of animal fats and soy beans, its main sources of raw material.
The partnership with Petrobras Biocombustível started with the investment in the Marialva unit, in northern Paraná, in 2009. In July 2011, the companies entered into a partnership, with equal participation, for the productionof biodiesel in the municipality of Passo Fundo.
BSBIOS hás become the largest producer of biodiesel in Brazil, according to data published by the National Agency of Petroleum, Natural Gas and Biofuels (ANP). It was the first Brazilian company to export biodiesel for commercial purposes, maintaining relations with 32 countries. The two plants generate 471 direct and 80 indirect jobs, and have a total capacity of 828 million liters of biodiesel per year.
Partners and Funders
The ECB Group was assisted in this acquisition process by a set of long-standing partners with recognized technical capacity. Banco Itaú BBA acted as financial advisor, with the company GRT Partners as co-advisor.
As structurers and financiers, ECB relied on the banks Itaú and Banco do Brasil, which have a long and solid relationship with the Group.
In the Legalarea, the Veirano Law Firm, in Porto Alegre, was responsible for structuring and auditing.
“I can only be grateful for the excellent work done by the team that advised me. They were all fantastic. I would like to thank Banco Itaú and Banco do Brasil, who in this operation reaffirm their commitment to the Biofuels sector in Brazil, ”said Erasmo Battistella.
In 2019, the company invested R$ 69 million, of which R $ 56.5 million in equipment and approximately R $ 12.5 million in infrastructure improvement. Another R $ 6 million was invested in innovation and energy efficiency actions.
Recently, the biodiesel production units in Passo Fundo and Marialva underwent industrial expansions, with their manufacturing capacity expanded to 414 million liters of biodiesel each.
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