Nutrien Ltd., Saskatoon, has agreed to buy Terra Nova Agrícola, which operates in the state of Minas Gerais, in order to expand its retail network in Brazil. The purchase will add nine branches, bringing Nutrien’s total to 33 in Brazil, the company said on July 8.
“With today’s announcement, we have now advanced four value-enhancing acquisitions in the last 18 months, supporting our expansion goals with a complementary increase in the number of physical branches and specialized consultants,” said Andre Dias, Nutrien’s Latin America President.
In Minas Gerais, where Nutrien already has a presence, it said acquiring one of the major retailers in the state furthers Nutrien’s growth goals and allows the company to leverage Terra Nova’s extensive reach and expansion capacity while offering Nutrien’s full-service model, which combines Experience Centers, consultants, and a digital platform in an integrated way.
“Terra Nova has developed a commercial approach that brings important competitive advantages to help further solidify Nutrien as one of the leading agricultural retail companies in Minas Gerais. We will continue Terra Nova’s work of offering a complete portfolio of services and a qualified sales team, now with access to our expanded set of solutions to serve the farmer,” added Dias.
Total revenue from Terra Nova’s crop inputs business is estimated at 250 million Brazilian reals (US$47.6 million), with average EBITDA margins of approximately 10 percent, which Nutrien said is in line with similar transaction metrics of ag retail businesses acquired by Nutrien in the U.S.
The transaction is subject to approval by the Administrative Council for Economic Defense (CADE). The acquisition value was not disclosed.