All Posts from July 6, 2016

EuroChem buys controlling stake in Brazilian fertilizer company

EuroChem Group AG announced on July 6 that it has acquired a controlling stake of 50 percent plus one share in Fertilizantes Tocantins, a leading fertilizer distribution company in Brazil. The transaction is expected to be close by the end of August, subject to regulatory approvals. Financial details were not disclosed

“The acquisition is in line with EuroChem’s strategy to strengthen its presence in the fast growing Latin American fertilizer market,” the Russian company said in a statement. “With Fertilizantes Tocantins’ market expertise, blending facilities, and established network of 2,000 customers, this acquisition will strengthen EuroChem’s capabilities in the region.”

Fertilizantes Tocantins was founded in 2003 and is located in Brazil’s north, northeast, and Midwest farming regions. The company’s fertilizer sales reached 740,000 mt in 2015. Under the terms of the acquisition, José Eduardo Motta, Fertilizantes Tocantins’ owner, will retain a significant interest in the venture while continuing to serve as CEO and overseeing operational management and the strategic growth of the business.

“With this backing from EuroChem, such an established global fertilizer producer, we are confident in our ability to significantly increase our market share in Brazil,” Motta said.

“The acquisition of Fertilizantes Tocantins creates compelling growth opportunities for EuroChem in Brazil, allowing us to significantly expand our offering of high-quality fertilizers to local farmers,” said Dmitry Strezhnev, EuroChem CEO. “With José Eduardo continuing as CEO, we are well-placed to tap into Brazil’s fast-growing fertilizer market.”

Agrium to acquire Cargill’s U.S. ag-retail business

Crop Production Services (CPS) and Cargill AgHorizons (U.S.) have reached a binding purchase agreement whereby CPS will acquire 18 Cargill ag-retail locations in Nebraska, South Dakota, Minnesota, Wisconsin, Michigan, and Indiana, according to a July 6 announcement from Agrium Inc., the parent company of CPS.

Agrium said the 18 Cargill locations have annual revenues of more than $150 million. The transaction is subject to customary closing conditions and regulatory clearances, and does not involve Cargill’s Canadian crop input retail business. The transaction is expected to close by the end of the third quarter of 2016.

“This acquisition demonstrates our continued focus on growing our North American Ag-retail business, particularly in the highly desirable U.S. Cornbelt,” said Agrium’s president and CEO Chuck Magro. “This acquisition will allow us to capitalize on synergies related to the introduction of our proprietary products and services, and leveraging our extensive distribution network. We welcome the Cargill Ag-retail employees to the Agrium family and are excited to bring our agronomic expertise and quality products and services to growers in this important agricultural region.”

Magro noted that the locations are in regions where CPS currently has a limited presence. He said the acquisition will allow Agrium to capitalize on synergies and allow it to leverage its existing distribution network.

“Cargill will focus on being the world’s leading merchant of grain and oilseeds,” said Roger Watchorn, group leader of Cargill’s North American agricultural supply chain. “We remain steadfast in our commitment to help farmers succeed by ensuring they remain competitive in the global market and being as efficient as possible in getting products from origins to destinations.”

Cargill is based in Minnetonka, Minn., and is the largest privately held corporation in the U.S. It’s major businesses include trading, purchasing, and distributing grain and other agricultural commodities; livestock and feed production; food ingredients; industrial products and services; and financial services. The company has some149,000 employees in 70 countries.