|
 |
|
|
|||
|
 |
|
Feb. 6, 2019 Source: Nutrien news release Nutrien Ltd. (Nutrien) announced today that it has entered into a definitive agreement to purchase 100 percent of the equity of Actagro, LLC (Actagro), a leading developer, manufacturer and marketer of environmentally sustainable soil and plant health products and technologies. Actagro's premier commercial portfolio includes approximately 30 specialty products that have a strong track-record of increasing crop productivity and financial returns for growers. Actagro's products are produced at two US manufacturing facilities located in California and Arkansas, and distributed across global agricultural markets through numerous retailers and distributors, including Nutrien's Retail business. The acquisition includes Actagro's strong research and development team, as well as a near-complete, world-class research and development facility located in California that will support the continued development of soil and plant health technologies. "The acquisition of Actagro is aligned with Nutrien's strategy to invest in higher-margin proprietary products that provide strong value for growers," commented Chuck Magro, Nutrien's President and CEO. "Actagro has a strong track record of developing and manufacturing high-value crop nutrition products and we see a significant opportunity to expand the business by leveraging the global reach of our Retail network and the expansion of Actagro's strong relationships with domestic and international distributors. "Nutrien will continue to use its strong balance sheet and cash flow to prudently allocate capital towards growth opportunities that create value for our customers and our shareholders," The purchase price is US$340 million, including approximately US$20 million in working capital, and is expected to be accretive to earnings in the first year. We expect the business to generate approximately US$55 million in run-rate EBITDA two years after close with the realization of synergies and organic growth opportunities. Closing of the transaction is subject to US regulatory approval and is expected to be completed in the first half of 2019. 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 26 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. Tweet |
|
|
|
|
|
|
|
|
|||||||||||||
