The companies said that the new structure will help create significant efficiencies in the global supply chain as well as add value to both of the companies’ partner plants. The companies’ operations are very similar and complementary, focusing on the integration of world supply-demand and logistic solutions throughout the supply chain.

With 20 years of history, Eco-Energy operates in the marketing and distribution of biofuels, with solutions including exclusive alliances with ethanol producers, logistics, and marketing services to the downstream US fuel distributors. Eco-Energy currently handles 9% of the US ethanol market, with annual sales of more than US$3 billion.

The business model is very similar to that of Copersucar, a Brazilian company with 53 years in the sugar and ethanol industry. For the current season (2012-13), Copersucar will market the equivalent of 24% of the production from the sugarcane production in the Center-South region of Brazil, with a volume of 1.3 billion gallons (4.8 billion liters) of ethanol and 8.7 million tons of sugar, and revenues estimated at US$7.5 billion (R$15 billion). For the 2011/2012 season, ethanol sales accounted for 41% of the company’s revenues. Its operations are supported by an integrated logistics system of transport and storage, and a large scale commercialization, both in the domestic and international markets.

The closing is still subject to certain regulatory approval.