Azzas Hires Morgan Stanley to Explore Sale of Farm Rio Valued Near R$5–5.5 Billion

Overview

• Azzas disclosed on June 19 that it engaged Morgan Stanley to evaluate strategic alternatives for Farm Rio, triggering a formal review rather than announcing a sale.
• Bank estimates led by J.P. Morgan place Farm Rio’s value at about R$5–5.5 billion using a 9–10x projected EBITDA framework, with market reports translating that to roughly US$1 billion.
• News of the review pushed Azzas shares up about 8–10%, reflecting investor reassessment because the brand’s implied value would exceed the parent group’s market capitalization.
• Analysts note Farm Rio is run almost independently by founders Kátia Barros and Marcello Bastos, who hold a small stake and may be willing to leave, and the unresolved dispute between Alexandre Birman and Roberto Jatahy complicates timing and outcomes.
• Farm Rio delivered double‑digit growth and strong margins, sold more than R$1 billion abroad, and accounted for about 23% of Azzas’s revenue in 2025, which underpins analysts’ view that monetizing the brand could materially reshape the group.