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Adecoagro – One of the largest agricultural companies in South America

Adecoagro started operating in 2002 with the purchase of 74,000 hectares of land in Argentina and from then on they became one of the largest agricultural companies in South America.

Adecoagro production is mainly focused on sugar and ethanol, but it is also producing soy, rice, corn, and dairy.

The company’s main competitive advantages are its low production costs, clean ownership structure, varied land ownership, and strong valuation (stock price below book value). Your stock screener or data provider will show a higher price to book value, but this is due to the fact that the company’s subsidiaries hold accounts in local currencies which only later get converted into dollars.

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Adecoagro Company Video

Its history: Adecoagro SA operates as a holding company (Luxembourg), which is dedicated to the production of agricultural products and renewable energy. The company was founded by Alan Leland Boyce, Mariano Bosch, and Walter Marcelo Sánchez in 2002 and is headquartered in Luxembourg.

Adecoagro LP controls companies in Uruguay, Argentina and Brazil and is a limited partnership of Delaware (USA) (formerly Adecoagro LLC ) which is owned by IFH LP (International Farmland Holdings) , which is 98% owned by Adecoagro SA.

It is related at least in Argentina to CHS Inc, which is one of the largest agricultural cooperatives in the United States. It quotes its shares in the New York Stock Exchange. Adecoagro has several subsidiaries among them: Adeco Agropecuaria SA . , Pilagá SRL . Ona Ltd, Toba Ltd, Kadesh Hispania SL.

In 2002, they begin operations with the acquisition of 100% of the shares of Pecom Agropecuaria SA (“Pecom”) of Perez Companc, an Argentine corporation (joint-stock company). Pecom changed its name to Adeco Agropecuaria SA. Adeco Agropecuaria was the platform from which they execute expansion plans, including the acquisition of more land and the diversification of commercial activities.

In 2004, they begin regional expansion and acquired a farm in Uruguay (approximately 5,000 hectares). The Macarena.

In 2005, they acquired La Agraria SA 4,857 hectares) and Establecimientos El Orden SA and Cavok SA 15,157 hectares) in Argentina, acquire a sugar and ethanol plant, Usina Monte Alegre SA,

In 2006 and 2007, they acquired Pilagá SRL, 88,000 hectares (Argentina) and others in Argentina and Brazil, and also acquired Lácteo SA. Adecoagro is associated with Agropur for the industrialization of the dairy business, taking La Lacteo (Argentina) as an expansion platform.

In 2007, they purchased approximately 3,177 hectares in Uruguay. La Pecuaria (in Durazno).
They have contacts with El Tejar. Adecoagro together with El Tejar brought Agro Invest SA . (in Argentina).

In 2011, they completed an initial public offering of shares listed on the New York Stock Exchange. Prior to the Initial Public Offering, it was controlled by Pampas Húmedas LLC (subsidiary of Soros Fund Management LLC) (33.95%); HBK Master Fund LP (25.59%); Stichting Pensioenfonds Zorg in Welzijn (13.51%) (The Netherlands); Ospraie Special Opportunities Master Holdings Ltd. (11.71%) and Al Gharrafa Investment Company (6.48%), a subsidiary of Qatar Holding LLC and other minority shareholders (8.76%). (web source of the company).

In 2013. Adecoagro had more than 286,000 hectares of farmland and several industrial facilities distributed in the most productive regions of Argentina, Brazil, and Uruguay,

2013. Investment funds hold 13% of the shares. Being the majority shareholder Pampas Humedas LLC, a limited liability company of Delaware, subsidiary of Soros Fund Management LLC.

More recently it has been in the press for its purchase of the troubled Argentine Dairy Sancor company once coveted by Fonterra of New Zealand.

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Alejandro Cabrera

About Alejandro Cabrera

Alejandro's expertise fits well with his Special Projects position within GTSA. His cross-cultural international business experience working along aside large foreign companies in Argentina, Brazil, Chile and Uruguay giving expert advice related to M&A and Joint Venture negotiations. He is fluent in English, Spanish, French and Portuguese

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