LDC sells Brazil corn processor for undisclosed sum, parties confirm

By Roberto Samora

SAO PAULO, Feb 29 (Reuters) - Louis Dreyfus has reached an agreement to sell a corn processing unit to Brazilian privately owned ingredients company Milhao Ingredientes, both companies said on Thursday.

The deal was first reported by newspaper Valor Economico.

The Goias-based buyer said the plant had been "on Milhão's radar for a long time."

The announcement comes in the same month that Milhao unveiled a deal with Brazilian farming conglomerate Amaggi, which acquired an undisclosed stake in the Goias-based agribusiness group.

Milhao produces food ingredients primarily from non-GMO grains.

The unit acquired from LDC, based in the town of Rio Verde, Goias state, caters to the human and animal nutrition industries, and will enable the buyer to double its own production capacity, according to the statement.

"Our objective, with the signing of the agreement (with Dreyfus), is to increase our structure, but without giving up on the quality and excellence that have always guided Milhão's trajectory," said Leandro Carneiro, who founded the company together with his brother Luciano Carneiro.

The deal's finalization hinges on regulatory approvals, the companies said.

Currently, Milhao has a production capacity of 280,000 metric tons per year. Next month, the company plans to open a non-transgenic corn oil plant in the town of Goianira, in Goias state.

Neither LDC nor Milhao provided financial details of the transaction.

This month, LDC disclosed a deal to sell another corn processing unit located in Apucarana, Parana state, to Baxi Foods.

LDC said the recent agreements to sell the corn processing units "will not impact the company's other corn-related businesses."

(Reporting by Roberto Samora Writing by Ana Mano; Editing by David Gregorio)

((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob: +55-119-4470-4529; Reuters Messaging: ana.mano.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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