Arlon takes stake in Brazilian dairy company

The food and agri private equity firm has acquired a minority stake in Betânia.

Food and agri investor Arlon Group has acquired a minority stake in Betânia, one of Brazil’s largest dairy companies.

“Betânia is well positioned in the growing milk industry as the leading regional dairy company. We are very excited to partner with Bruno Girão, who built and led the impressive growth and professionalization of the company. Betânia has developed a value-added portfolio, good brand recognition and a strong supply chain,” Arlon partner Bruno Silva said in a statement.

The investment in the company was made from Arlon’s Latin America fund, a $400 million vehicle, a person with knowledge of the deal told Agri Investor.

Arlon did not respond to requests for comment.

The deal is Arlon’s third in Brazil in two years. Late last year the firm backed Sotran SA Logistica e Transporte, a transport company serving the agribusiness sector, and in 2015 took a stake in Grano Alimentos, a Brazilian frozen vegetable producer.

Arlon’s other fund is a $335 million US-focused vehicle closed in 2011.

All of Arlon’s funds are anchored by Continental Grain, the US grain trader that Arlon spun out of in 2008. Rabobank anchored the firm’s first fund.

In Latin America Arlon works in partnership with VR Investments, a Brazilian investment company.