Asian Adds Brazil Sugar Asset

Singapore-based food and agriculture player Olam International has agreed to acquire Brazilian sugar mill Usina Acucareira Passos (UAP) for BRL255 ($129m), it says. It plans to invest $116m during the next 5 years to improve growing and crushing capacity efficiency. Funded through internal accruals and borrowings, the investment is expected to be earnings accretive from the second year of operation. Olam expects to deliver an Ebitda margin in excess of 30% by 2016 and generate IRR in excess of 20% on the investment. UAP is located in Minas Gerais.