As reported at the end of March in DairyReporter, Adecoagro, an agro industrial company in South America, submitted an investment proposal to partner with SanCor to develop and expand the business.
Under the terms of the offer, SanCor will contribute with selected operational facilities, brands and employees, while Adecoagro will bring raw milk production and finances.
SanCor’s board of directors was authorized to perform all the necessary acts for the constitution of a Limited Company (S.A.) and transferred to the new S.A. the production plants, personnel, logistics centers, SanCor brands and other assets and liabilities included in the offer.
SanCor will sell no less than 90% of the shares of the new company to Adecoagro.
After the deal and reorganization is completed, SanCor will continue as a cooperative of milk producers, managing the raw material produced by its associates and promoting dairy development through technical assistance and the provision of related services.
Adecoagro said it is currently expanding its dairy operations, and expects to double its current capacity over the next 15 months.
Adecoagro is the largest raw milk producer in Argentina, producing more than 270,000 liters of raw milk per day.