NYSE, TSX: NTR
SASKATOON, Jan. 29, 2018 /PRNewswire/ - Nutrien Ltd.
(Nutrien) is pleased to announce that it has entered into a
definitive agreement to acquire Agrichem, a leading specialty plant
nutrition and plant health product company in Brazil. Agrichem is one of Brazil's largest liquid NPK fertilizer
companies, as well as a producer and marketer of plant health
products, including bio-stimulants and health inductors. The
company has 195 employees and 35 product registrations actively
marketed and a strong platform for future growth. The primary
production facility is located close to key agricultural markets in
Brazil, with an annual production
capacity of almost 12 million litres.
"As a leader in Brazilian specialty nutrient markets, the
Agrichem team and extensive product profile will be an excellent
fit with our Loveland products business," commented Chuck Magro, Nutrien's President and CEO.
"Brazil will be a strategic focus
for further expansion due to its large and growing agriculture
retail and crop input market," added Mr. Magro.
Agrichem is expected to be accretive to earnings in 2018, with
total annual historic net sales of over $55
million and historic EBITDA of over $15 million. The acquisition will be made in two
tranches, with 80 percent of the business to be acquired in the
coming months. The remaining 20 percent of the business will be
acquired in 2019, based on 2018 EBITDA levels. Closing of the
transaction is subject to regulatory approval and satisfaction of
customary conditions precedent.
As part of this acquisition, Nutrien expects to capture
synergies through the distribution of a variety of Nutrien's
existing crop input products and services in Brazil. This includes our Loveland Products
proprietary technologies and potential for leveraging our
respective digital agriculture technologies.
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 over 25 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. For further information visit us at
www.nutrien.com.
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. 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: the expected closing of the
transaction and the anticipated timing thereof, the anticipated
effect of the transaction on the Loveland products business,
Nutrien's strategic focus in Brazil and estimated accretion, sales, synergy
capture and other related metrics.
Such forward-looking statements are based on certain key
expectations and assumptions made by Nutrien including expectations
and assumptions concerning the time necessary to satisfy the
conditions to the closing of the transaction, including the
regulatory approvals in connection therewith and synergy capture.
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.
Factors that could cause actual results to differ materially
from those in the forward-looking statements include, but are not
limited to, estimates, forecasts and statements as to management's
expectations with respect to, among other things, business and
financial prospects, financial multiples and accretion estimates,
future trends, plans, strategies, objectives and expectations,
failure to complete the transaction as contemplated and the ability
to successfully integrate the new business into our existing
business in an effective manner, general economic, market and
business conditions, weather conditions, crop prices, the supply
and demand and price levels for our major products and products
associated with the Agrichem business, governmental and regulatory
requirements and actions by governmental authorities, including
changes in government policy, changes in environmental, tax and
other laws or regulations and the interpretation thereof. The
anticipated timeline for completion of the transaction may change
for a number of reasons, including the inability to secure
necessary regulatory approvals in the time assumed or the need for
additional time to satisfy the conditions to the completion of the
transaction. As a result of the foregoing, readers should not place
undue reliance on the forward‐looking statements contained in this
press release concerning the timing of the transaction.
The forward-looking information in this press release speaks
only as of the date hereof and Nutrien disclaims any intention or
obligation to update or revise any forward-looking information as a
result of new information or future events, except as may be
required under applicable securities laws.
FOR FURTHER INFORMATION:
Investor/Media Relations:
Richard
Downey
Vice President, Investor & Corporate Relations
(403) 225-7357
Jeff Holzman
(306) 933-8545
Todd Coakwell
(403) 225-7437
investors@nutrien.com
SOURCE Nutrien Ltd.