A dream that continues to be realized: we assume 100% control of BSBIOS

We have just confirmed a negotiation that represents the realization of another stage of a dream in my business project. Petrobras Biocombustível (PBIO) confirmed this Wednesday (12/23) the sale of its 50% stake in BSBIOS Indústria e Comércio de Biodiesel Sul Brasil to our company, RP Biocombustíveis, which owns the other 50% of the 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 have been partners since 2009 in the company, which today is a leader in the production of biofuels in Brazil.

Thus, we assume 100% of BSBIOS control.

I was 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.

We formed a successful partnership that lasted eleven 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.

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 approximately R $ 322 million. I am happy that the conclusion was made with the achievement of profitability for the partner. The transaction is awaiting the approval of the Administrative Council for Economic Defense (Cade).

Now our vision is to continue to grow, as we are sure that the fuel of the future is green.

The dream of creating a large renewable energy company in Brazil 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. The commitment is to build a legacy through biofuels, through the development of a sustainable and cleaner economy.

At this point, I would like to give a special thanks to the entire BSBIOS team that made it possible to build this incredible story. We also have the strong support of our business partners, who helped us to become the market leader. Now we are going to stay strong, overcoming the new stages of this business journey.

We are building a new strategic plan for BSBIOS, to be released after the deal is approved at Cade.

BSBIOS was founded on April 15, 2005 with the purpose of producing biodiesel, installing a modern industry strategically located in Passo Fundo, close to the production of animal fats and soybeans, 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 production of biodiesel in the municipality of Passo Fundo.

BSBIOS has 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.

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 coadvisor.

As structurers and financiers, ECB relied on the Banco Itaú and Banco do Brasil, which have a long and solid relationship with the Group. In the Legal area, the Veirano Law Firm, in Porto Alegre, was responsible for structuring and auditing.

I can only thank 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, which in this operation reaffirm their commitment to the Biofuels sector in Brazil.

We are steadfastly moving towards a green future in Brazil and in the world.