Lavoro Announces Separation and Sale of Controlling Interest in Crop Care Companies

Lavoro Limited announced the definitive agreements for the separation and sale of a controlling stake in its Crop Care segment companies: Agrobiológica, Cromo Química, and Union Agro. The stake is being acquired by funds managed by Patria Investments Limited. This transaction is expected to strengthen Lavoro's balance sheet, reduce leverage, and enhance liquidity, aligning with its strategic priority of deleveraging. The Crop Care Companies will continue their commercial relationship with Lavoro substantially unchanged post-transaction. Perterra is not included in this sale. Lavoro aims to emerge from the current cycle leaner and more agile by right-sizing its cost structure and driving operational efficiencies. Proceeds will primarily be used to improve the balance sheet and liquidity.