Nutrien Ltd., Saskatoon, said on Aug. 25 it has received approval from Brazil’s Administrative Council for Economic Defense (CADE) to acquire Terra Nova Agrícola (GM July 9, p. 1), which operates in the state of Minas Gerais. The purchase allows Nutrien to expand its retail network in Brazil by nine, to a total of 33.
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.
Since making the Terra Nova announcement, Nutrien has also announced that it plans to buy Brazil’s Bio Rural, Mato Gross do Sul (GM Aug. 13, p. 35), which would add another nine outlets. CADE approval for this deal is still awaited. In total, Nutrien has made five acquisitions in Brazil in the last 18 months.