Cosan: A Leading Firm in Sugar and Alcohol Markets After Acquisition

Sugar and alcohol manufacturer Cosan (CZZ) announced a net income of $5.2 million for the third quarter 2009.

The company also announced its acquisition of the company Nova America, one of its chief competitors. This acquisition will position Cosan as a leading firm in the sugar and alcohol markets.

Net income for the quarter was R$2.565 billion, with a high of 280% over the same period of the previous fiscal year. Also, EBITDA (earnings before interest, taxes, depreciation and amortization) grew from U.S.$1.3 million to $234.5 million during the period.

The company also broke its quarterly record for the milling of sugar cane. It moved 44.2 million tons in the fiscal year, produced 1.716 billion liters of alcohol and 3.268 million tons of sugar.

Cosan also announced its merger with Nova America. With the merger, which must be completed in a period of 45-60 days, Cosan will expand its leadership of the sugar-alcohol sector.

The company will operate 23 plants and has an annual milling capacity of approximately 60 million tons of sugar cane, which represents about 10% of the Brazilian market.