Nutrien Ltd. announced on July 20 that it has entered into an agreement to acquire Brazilian company Casa do Adubo S.A. (Casa do Adubo). The acquisition includes 39 retail locations under the brand Casa do Adubo, and 10 distribution centers under the brand Agrodistribuidor Casal, all located in the states of Acre, Bahia, Espírito Santo, Maranhão, Mato Grosso, Minas Gerais, Pará, Rio de Janeiro, Rondônia, São Paulo, and Tocantins.
Terms of the deal were not disclosed, but Nutrien said the transaction supports its Retail growth strategy in Brazil and is expected to result in additional run-rate sales of approximately US$400 million, increasing total Nutrien Ag Solutions annual sales in Latin America to approximately US$2.2 billion. The transaction is pending approval from the Administrative Council for Economic Defense (CADE) in Brazil.
“The acquisition expands our footprint in Brazil from five states to 13 and supports growers in a key region of the world that will increasingly be relied on to sustainably increase crop production and feed a growing population, especially with the current global food insecurity challenges,” said Ken Seitz, Interim President and CEO at Nutrien.
“Our strong team in Brazil has successfully closed and onboarded five transactions since 2020,” Seitz added. “We expect that integrating Casa do Adubo will further enhance our ability to provide whole-acre solutions for all customers in the region, while delivering quality earnings in this large and growing market.”
Subject to approval and completion of the acquisition, Nutrien expects to surpass its stated target of US$100 million of adjusted EBITDA in Brazil by 2023. The company will have 180 commercial units in Latin America, including customer-facing retail branches and experience centers, five industrial plants, and four fertilizer blenders. In addition, Nutrien will have more than 3,500 employees in the region, including more than 700 crop consultants serving growers in Argentina, Brazil, Chile, and Uruguay.
“We appreciate the reputation Casa do Adubo has earned for delivering strong financial performance, attracting top talent, and offering quality products and services,” said André Dias, Nutrien’s Regional Leader in Latin America. “With the acquisition, we will strengthen our existing presence and expand to serve additional growers with innovative solutions that help sustainably feed the world.”
The transaction comes just three weeks after Nutrien announced an agreement to acquire Marca Agro Mercantil, an agricultural inputs retailer with seven stores in the regions of Triângulo, Alto Paranaíba, and Sudoeste Mineiro in Brazil (GM July 1, p. 1). Last December, Nutrien said it planned to spend R$600 million in 2022 on Brazil expansion (GM Dec. 17, 2021).