Brazil: Agrogalaxy acquires 80% stake in agricultural input retailer Ferrari Zagatto

Agrogalaxy, who canceled its IPO request in March 2021 , signed an agreement on 11th June to acquire 80% of the capital of Paraná company Ferrari Zagatto, which also operates in the retail agricultural input market.

According to data released to the market, Agrogalaxy will disburse a total of R$112,887,000 to sellers, subject to pre or post-closing adjustments pursuant to the contract.

With the acquisition, the subsequent transformation of Ferrari Zagatto will take place.

Agrogalaxy will sign an agreement with Ferrari Zagatto’s shareholders and the holders of the remaining equity interest in the company, corresponding to 20% of its share capital.

The conclusion of the deal still depends on attaining permission from the Administrative Council for Economic Defense (CADE).

The management and signing of the contract were approved during a meeting of the Board of Directors of Agrogalaxy, held on 10th June, 2021.

Founded in 1988, Ferrari Zagatto operates in the agricultural input market in the state of Paraná, through 14 stores located in the cities of Astorga, Atalaia, Boa Esperança, Engenheiro Beltrão, Itambé, Ivaiporã, Ivatuba, Japurá, Jussara, Mambore, Marialva, Maringá, São Jorge do Ivaí and São Pedro do Ivaí, in addition to nine silos.

In 2020, the company's audited revenue was BRL579 million, with input sales representing 45% of this total and the sale of grains representing 55% of total revenue, according to information available in its audited financial statements at the end of the year on 31st December, 2020.

Currently, Ferrari Zagatto has approximately 2,700 customers and 240 employees.