The Group commenced operations in the sugarcane industry in 1962 under the name Irmãos Tonon. The first mill, Santa Cândida, located in Bocaina in the state of São Paulo, initially produced cereals and cachaça, a liquor made from fermented sugarcane juice.
In 1979, the Group entered the ethanol business by founding Destilaria Tonon, in the state of São Paulo, where the production of ethanol began.
In 2002, the Group entered the sugar business by expanding its operations through Santa Cândida Açúcar e Álcool Ltda., a company designed to produce VHP sugar and, just one year later, began producing and selling electricity, becoming one of the first companies in the sugarcane industry to sell energy on the national grid.
In 2006, the geographic reach was expanded with the construction of the Vista Alegre mill, in the state of Mato Grosso do Sul, which began operations two years later.
In 2008, the Tonon Family entrusted the day-to-day operations to a team of professional managers, resigning from the Board of Executive Officers, while remaining active in the Group as members of the Board of Directors.
In 2009, the Group merged Santa Cândida Açúcar e Álcool Ltda., the company controlled by Tonon Family that owned the Santa Cândida mill, into Tonon Bioenergia Ltda., merging the two industrial mills into one sole company: Tonon Bioenergia S.A..
In 2010, Tonon Agricultura S.A. was merged into Tonon Bioenergia S.A. At the time of the merger, FIP DGF Terra Viva owned 100% of the shares representing the corporate capital of Tonon Agricultura S.A., which, in turn, owned an equity interest in Tonon Bioenergia S.A.. As a result of the merger, FIP DGF Terra Viva became Tonon Bioenergia S.A.’s shareholder, acquiring 100.0% of its preferred shares, representing approximately 18% of the Group’s total capital stock, for an aggregate amount of R$86 million.
In December 2011, the Group entered into share purchase and sale agreements, together with other related agreements, with Energisa pursuant to which we agreed to sell its co-generation assets to Energisa through four SPEs, and following a period of approximately 20 years the assets of these SPEs will be sold back to the Group.
In August 2012, following the fulfillment of the conditions precedent set forth in these agreements, Energisa acquired these four SPEs from the Group for approximately R$150 million. In October 2012, FIP DGF Terra Viva acquired additional preferred shares in Tonon Bioenergia S.A. through a capital contribution for the aggregate amount of R$44 million, thereby increasing its ownership of total capital stock from approximately 18.0% to 30.4%.
In March 2013, the Group entered into a Share Purchase Agreement with Paraíso Bioenergia S.A.’s shareholders to purchase all of the share capital of Paraíso Bioenergia S.A., which operates one mill with 2.5 mm tons of installed capacity close to the Santa Candida mill. Once concluded the transaction, Tonon became Paraíso’s sole shareholder and now the company has an installed capacity of 8.2 million tons of sugarcane.