Nutrien Ltd. announced on Aug 12 its agreement to acquire Bio Rural, a Brazilian retail business, operating in the soybean and corn producing state of Mato Grosso do Sul.
“This acquisition drives our expansion goals with a complementary increase in the number of physical branches and specialized consultants, allowing us to expand our presence and serve Brazilian farmers with the best and largest platform for agricultural solutions,” said André Dias, President of Nutrien for Latin America.
Nutrien said it plans to combine the knowledge and experience of Bio Rural with Nutrien’s global leadership in product and service offerings. Total revenue associated with Bio Rural is approximately R$200 million (US$38 million), with average EBITDA margins of approximately 10 percent. Nutrien said the deal will add another nine branches.
“Bio Rural built its history based on credibility, quality, and proximity to rural producers. Now we can bring our service model to these farmers, which combines Experience Centers, specialized consultants, and a digital platform in an integrated manner to provide information to and drive value for our growers,” added Dias.
Terms of the deal were not reported. The transaction is subject to approval by the Administrative Council for Economic Defense (CADE) and other customary closing conditions.
Leading up to the Bio Rural news, Nutrien had 33 branches in Brazil, having made four acquisitions in Brazil in the last 18 months, with the latest being Terra Nova Agricola in July (GM July 9, p. 1).