Nutrien Announces Agreement to Purchase Brazilian Ag Retailer Agrosema
January 06 2020 - 10:33AM
Business Wire
Nutrien Ltd. (“Nutrien”) (NYSE, TSX: NTR) announced today that
it has entered into a definitive agreement to purchase 100 percent
of the equity of Agrosema Comercial Agricola Ltda. (“Agrosema”).
Agrosema is an important Ag retailer in the southern Brazil crop
input market with over 30 years of experience. Their annual sales
are approximately US$60 million across 12 farm centers with
approximately 200 employees servicing thousands of farm
customers.
“The Agrosema acquisition is an excellent fit as we continue to
build our Ag retail business in the important and growing Brazilian
agricultural market. We expect to continue to expand our operations
in Brazil in the coming years, both through acquisition and
expansion of product and service offerings”, said Chuck Magro,
President and CEO of Nutrien.
“Bringing Nutrien’s extensive products and solutions to the
Brazilian farmer is a key goal for the company. We believe we can
provide new product offerings and solutions to help Brazilian
agricultural producers become more profitable and to grow their
business,” said André Dias, Vice President and Managing Director of
Nutrien in Brazil.
Currently Nutrien Ag Solutions has two main operations in
Brazil, with a central fertilizer blending facility in Itapetininga
and six additional facilities in the states of São Paulo and Minas
Gerais. Nutrien also owns Agrichem which produces specialty liquid
fertilizers servicing the entire country.
This acquisition complements our current retail operations in
Brazil and will create another market channel for our industry
leading national products, produced by our Agrichem business
located in Ribeirao Preto, São Paulo. The acquisition multiple was
in line with similar sized tuck-in acquisitions in North America in
recent years.
Closing of the transaction is subject to approval by the
Administrative Council for Economic Defense (CADE) and the
satisfaction of other customary closing conditions.
About Nutrien
Nutrien is the world's largest provider of crop inputs and
services, playing a critical role in helping growers increase food
production in a sustainable manner. We produce and distribute 27
million tonnes of potash, nitrogen and phosphate products
world-wide. With this capability and our leading agriculture retail
network, we are well positioned to supply the needs of our
customers. We operate with a long-term view and are committed to
working with our stakeholders as we address our economic,
environmental and social priorities. The scale and diversity of our
integrated portfolio provides a stable earnings base, multiple
avenues for growth and the opportunity to return capital to
shareholders.
Forward-Looking Statements
Certain statements and other information included in this press
release constitute “forward-looking information” or
“forward-looking statements” (collectively, “forward-looking
statements”) under applicable securities laws (such statements are
usually accompanied by words such as “anticipate”, “expect”,
“believe”, “may”, “will”, “should”, “estimate”, “intend” or other
similar words). All statements in this press release, other than
those relating to historical information or current conditions, are
forward-looking statements, including, but not limited to: expected
benefits of the acquisition, including expected impact on earnings,
run-rate EBITDA, synergies, growth opportunities and expansion, as
well as the timing of the foregoing; future allocation of capital;
timing for the completion of the acquisition; and the ability to
satisfy the conditions to, and complete, the acquisition.
Forward-looking statements in this press release are based on
certain key expectations and assumptions made by Nutrien, some of
which are outside of Nutrien’s control. Although Nutrien believes
that the expectations and assumptions on which such forward-looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because Nutrien can give
no assurance that they will prove to be correct. Additional
assumptions that have been made include, among other things,
assumptions with respect to Nutrien’s ability to successfully
integrate and realize the anticipated benefits of the acquisition;
that Nutrien will be able to implement its standards, controls,
procedures and policies at the acquired business to realize
expected synergies; that future business, regulatory and industry
conditions will be within the parameters expected by Nutrien, and
assumptions with respect to global economic conditions.
Forward-looking statements are subject to various risks and
uncertainties which could cause actual results and experience to
differ materially from the anticipated results or expectations
expressed in this press release, including the ability to obtain,
and obtain in a timely manner, the required regulatory approval,
the ability to otherwise satisfy the conditions to the acquisition,
the failure to successfully integrate and realize expected
synergies associated with the acquisition, general global economic,
market and business conditions, and other risk factors detailed
from time to time in Nutrien reports filed with Canadian securities
regulators and the Securities and Exchange Commission in the United
States, including those disclosed in Nutrien’s business acquisition
report dated February 20, 2018.
Nutrien disclaims any intention or obligation to update or
revise any forward-looking statements in this press release as a
result of new information or future events, except as may be
required under applicable US federal securities laws or applicable
Canadian securities legislation.
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version on businesswire.com: https://www.businesswire.com/news/home/20200106005703/en/
Investor and Media Relations: Richard Downey Vice
President, Investor & Corporate Relations (403) 225-7357
Investor Relations: Tim Mizuno Senior Manager, Investor
Relations (306) 933-8548 Contact us at: www.nutrien.com
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