Amaggi has just announced the acquisition of 40% of FS, marking the most emblematic transaction in the history of the Brazilian corn ethanol industry — and one of the most important M&As between two companies from Mato Grosso.
The agreement between the Maggi family’s company and the giant corn ethanol producer controlled by the American Summit Agricultural Group was filed this afternoon with Cade (Administrative Council for Economic Defense), which will analyze the operation.
The total value of the transaction was not disclosed. The agreement foresees an investment of resources, with a primary share issuance by FS, in the amount of US$100 million, according to Rafael Abud, CEO of the corn ethanol producer.
Amaggi is also buying stakes from current shareholders. The companies did not disclose the values involved in the secondary part of the transaction.
The companies will remain separate and there will be no changes to FS’s board of directors. Amaggi’s participation will be through the board of directors, which has eight seats — the companies did not disclose how the division will be made.
The agreement reached between the companies provides for exclusivity. In other words, from now on, all investments that Amaggi makes in corn ethanol will be through FS.
For Amaggi, the understanding is that the investment in FS is transformational, as it promotes growth in cash flow and greater diversification of its businesses,” said Judiney Carvalho, CEO of Amaggi.
According to him, the decision to invest in corn ethanol was made after extensive studies and broad discussions between management and shareholders. “Amaggi believes in FS’s market presence and sees this agreement as a unique opportunity to enter the segment, generating value and synergies that justify the investment.
Impasa and Petrobras fall behind.
The alliance between Amaggi and FS marks a turning point in the trajectory of the Brazilian corn ethanol industry.
Last year, the Maggi family conglomerate announced a partnership with Inpasa to build three corn ethanol plants in Mato Grosso, but the agreement fell through in less than two months due to disagreements.
FS could also have sealed a different fate. The company was close to an agreement to sell a minority stake to Petrobras, but the talks cooled off.
For FS, it’s a great opportunity to have such an experienced partner in Brazilian agribusiness,” said Abud.
The future of FS.
With Amaggi’s entry into the capital, FS will have a strong partner to continue expanding.
Currently, the company is building its fourth plant in the municipality of Campo Novo do Parecis, which will be inaugurated at the end of 2026. The company also owns two other plots of land in Mato Grosso, with the goal of reaching six factories, although no set date has been set.
Another major project of the company, scheduled to open in September, is the carbon capture and storage unit located in the Lucas do Rio Verde complex — which will make FS the world’s first producer of carbon-negative fuel.
For now, expansion plans remain the same, according to Abud, who stressed that decisions regarding new investments will continue to respect the company’s cash flow and leverage level.
As the largest national capital trading company and one of the largest agricultural companies in the country—with over R$40 billion in revenue—Amaggi is expected to bring expertise to FS. “We will have several opportunities for collaboration in areas such as corn origination, trading, logistics, and biomass,” said Abud.
Despite the synergies, there is no prior agreement for the purchase and sale of corn, which represents about 80% of FS’s costs. According to Abud, any commercial transactions between the two companies will respect market conditions.
FS has annual revenues of nearly R$13 billion, with an EBITDA of approximately R$3.5 billion — an implied margin of 26.7% — considering the financial results for the last twelve months ending in December.
In a recent report, which now seems prophetic, analysts at BTG Pactual stated that a potential monetization of the controlling shareholder’s stake could unlock significant value for FS, reducing leverage and accelerating investments. At the end of December, the company’s net debt totaled R$ 9.5 billion, equivalent to 2.76 times its EBITDA.