Beta San Miguel acquires 15.93% stake in Sucro Ltd

USA – Mexican sugar cane refiner Beta San Miguel, SA de CV (BSM) has acquired a 15.93% stake in Sucro Ltd. (Sucro) from SC Americas Corp., Sucro’s controlling shareholder. 

SC Americas, led by Sucro founder and CEO Jonathan Taylor, previously held approximately 67.5% of the company’s voting and equity shares.  

This acquisition is set to deepen BSM’s collaboration with Sucro and expand both companies’ reach within the North American sugar market. 

As part of the transaction, BSM has granted Sucro significant rights regarding the export of its raw and refined sugar.  

Sucro now holds first-offer, first-refusal, and matching rights on BSM’s entire raw sugar export quota and up to 75 percent of its refined sugar export quota to the United States, as assigned by the Mexican Secretary of the Economy.  

Additionally, Sucro will have priority over any raw or refined sugar BSM exports outside the United States and Mexico once domestic market obligations in Mexico have been met. 

“This strategic relationship with BSM brings together two innovative companies with a shared vision for growth and North American expansion,” said Taylor.  

“The transaction not only underscores BSM’s confidence in our business but also strengthens our ability to serve the North American sugar market. While this transaction marks a critical time in Sucro’s growth and development, it also provides important potential upside value if Sucro continues to execute on its current operating plan.” 

The agreement includes the appointment of BSM’s nominee, Patrik Palafox, to Sucro’s board of directors.  

Palafox, who has served as BSM’s Chief Strategy Officer since 2018 and as Chairman of BSM’s board since 2024, brings extensive industry expertise and insight into BSM’s operational strategy. 

The companies have also established a “hard” lock-up and support agreement under which Taylor and SC Americas have agreed to tender a portion of their shares if BSM launches a formal takeover bid for all subordinate voting shares in Sucro in 2027 or 2028.  

They also committed to voting in favor of a similar alternative transaction during this period, subject to specific conditions. 

The Investor Rights Agreement includes standstill restrictions on BSM and ensures that any shares acquired under a formal takeover bid will not impact the calculation of “minority approval” for any subsequent transaction. 

Despite BSM’s increased ownership, Sucro’s management retains control of over 60% of the company’s voting and equity shares.  

“Following completion of this transaction, Sucro management continues to own in excess of 60% of the voting and equity shares of the company, and we are extremely motivated and focused on delivering value for all shareholders,” Taylor added. 

In September, Sucro announced the successful completion of a two-year syndicated credit facility with Rabobank that increases its borrowing capacity to US$325 million with a US$50 million accordion feature. 

This financing will support Sucro’s general corporate needs and provide flexibility to pursue strategic growth initiatives, further establishing Sucro’s position within the expanding North American sugar market. 

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