Agrium Inc. has announced a binding purchase agreement between its Crop Production Services (“CPS”) and Cargill AgHorizons (U.S.) (“Cargill”) for the acquisition of 18 ag-retail locations with annual revenues of over $150-million. The outlets are located across the northern U.S. corn-belt region, in the states of Nebraska, South Dakota, Minnesota, Wisconsin, Michigan and Indiana.
“This acquisition demonstrates our continued focus on growing our North American ag-retail business, particularly in the highly desirable U.S. Corn Belt. The locations are in regions where we currently have a limited presence. 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,” commented Agrium’s President and CEO, Chuck Magro. “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,” added Mr. Magro.
Roger Watchorn, group leader of Cargill’s North American agricultural supply chain, said: “Cargill will focus on being the world’s leading merchant of grain and oilseeds. 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.”
The sale does not involve Cargill’s Canadian crop input retail business.
The transaction is subject to customary closing conditions, and regulatory clearances. The transaction is expected to close by the end of third quarter of 2016.