Tereos goes global with starch, sugar and biofuel plans

Tereos has combined its European cereal assets with its Brazilian subsidiary and Indian sugarcane business to create Tereos Internacional, and is setting itself up as a leader in starch ingredients, sugar and bioethanol.

The French company has shored up its presence in the European starch market in recent years, as its starch subsidiary Syral acquired in 2007 and subsequently revamped five starch and sweetener plants from Tate & Lyle.

The new company will have its headquarters in Sao Paulo, Brazil, and the Brazilian company, Guarani – in which Tereos Group had a 69 per cent shareholding – will become a wholly-owned subsidiary. Tereos Group, meanwhile, will be a majority shareholder in Tereos Internacional.

The newly-created company has 2009 pro forma sales of US$2.5bn and EBITDA of $366m. There are plans for it to be listed both on the BM&FBOVESPA in Brazil and on the NYSE Euronext in Paris.

The company will serve not only the food and beverage sectors, but also pharmaceutical, animal nutrition and energy industries. It is expected to have a foothold in both developed and developing countries, and to act on opportunities like health and nutrition, and green chemistry – especially in the Americas and Asia.

Philippe Duval, chairman of Tereos’s executive board, said: “Over the past decade, Tereos has become a major player in the sugar and ethanol industry in Brazil and the starch business in Europe. Today, by combining these activities in a new company that will have strong presence in Brazil and in Europe, we are taking a decisive new step to accelerate our growth strategy. This combination will allow us to be a key actor in the rapidly-consolidating food ingredients and bio-energy industries and will position us to be able to conquer new markets.”

Tereos Internacional will be headed up by Andre Trucy, who has previously been CEO of Rhodia in Brazil and of Roquette in France.