20 March 2012 14:00 [Source: ICIS news]
HOUSTON (ICIS)--Canadian agricultural input supplier Agrium plans to acquire the majority of Viterra’s Agri-business products for $1.15bn (€874m) plus working capital, the Canadian fertilizer producer said on Tuesday.
Agrium said it it has entered into an agreement with Glencore International to acquire the majority of Viterra's Agri-products business upon completion of Glencore's recently announced acquisition of Viterra.
Under the agreement, Agrium would acquire approximately 90% of Alberta-based Viterra's Canadian retail facilities, all of its Australian retail facilities, as well as their minority position in a nitrogen facility in Medicine Hat, Alberta.
The acquisition price from Swiss integrated commodity producer and marketer Glencore is about $1.15bn (€874m) plus working capital, Agrium said.
Average working capital needed for the business is estimated to be about $500m. In 2011, Viterra's total Agri-products business generated $2.4bn in revenue and $244m in earnings before interest, taxes, depreciation and amortisation (EBITDA), according to Viterra's annual report.
"We believe our crop production services retail business can provide significant value for Canadian farmers and that it provides an opportunity for growth in a market where we currently have a limited retail presence," said Agrium president and CEO Mike Wilson.
Agrium operates over 1,200 retail facilities in the US, Australia, Argentina, Canada (with 65 Canadian-based
facilities), Uruguay and Chile.
($1 = €0.76)
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