Agrium Inc. said late Jan. 8 that it has completed a strategic review of its Agrium Advanced Technologies (AAT) business unit and has opted to move from three company business units to two—Wholesale and Retail. The transition will occur in first quarter 2014.
Agrium will move AAT’s agriculture business, which is comprised of Environmentally Smart Nitrogen (ESN) and micronutrients to the Wholesale unit. It said this will more effectively leverage Wholesale’s strengths in manufacturing and distribution. Both micronutrients and ESN were part of Agrium Wholesale prior to the creation of AAT. Agrium said ESN in particular will remain a key premium product offered by Agrium, given the strong growth in demand for this industry leading and environmentally-friendly product.
AAT’s Turf and Ornamental and Direct Solutions businesses are under further strategic review, with all options, including divesture, being considered. The review is expected to be completed in the first half of 2014.
Agrium said it will provide further communication and clarity on this matter, including the impact of any reorganization cost, as it works through the transition in the next few months. It said a key component of the transition plan will be to execute the changes seamlessly and minimize business disruption for customers, suppliers, and employees. It said the reorganization is expected to have a positive net benefit to Agrium’s on-going earnings profile.