Nutrien announces $340mn agreement to acquire Actagro
Nutrien, the world’s largest provider of crop inputs and services, has announced plans to acquire environmentally sustainable soil and plant health products and technologies designer and manufacturer, Actagro. The deal will see Nutrien pay US$340mn to purchase 100% of the equity of Actagro.
Headquartered in Loveland, Colorado, Nutrien produces and distributes over 26 million tonnes of potash, nitrogen and phosphate products world-wide. The Actagro acquisition includes approximately 30 specialty agricultural products, which are produced at the company’s two manufacturing facilities in California and Arkansas. The products are distributed worldwide through through third-party retailers and distributors, as well as own Nutrien’s Retail business.
The acquisition also includes Actagro’s research and development team, as well as a world-class research and development facility located in California which is nearing completion. The facility, once operational, will support the continued development of soil and plant health technologies.
"The acquisition of Actagro is aligned with Nutrien’s strategy to invest in higher-margin proprietary products that provide strong value for growers. Actagro has a strong track record of developing and manufacturing high-value crop nutrition products and we see a significant opportunity to expand the business by leveraging the global reach of our Retail network and the expansion of Actagro’s strong relationships with domestic and international distributors. Nutrien will continue to use its strong balance sheet and cash flow to prudently allocate capital towards growth opportunities that create value for our customers and our shareholders," commented Chuck Magro, Nutrien's President and CEO.
The deal, which is subject to US regulatory approval, is expected to close in the first half of 2019.