Nutrien Announces Agreement for the Purchase of Brazilian Ag Retailer and Soybean Seed Producer Tec Agro
Tec Agro owns one of the largest branded soybean seed companies in Brazil, nationally recognized for its product quality.
Nutrien Ltd. announced that it has entered into a final agreement to purchase 100% of the capital of the Tec Agro Group ('Tec Agro'). Tec Agro is the leading agricultural distributor in the state of Goiás, with nearly 25 years of service to farmers and eight retail divisions. Tec Agro also holds one of the largest branded soybean seed businesses in Brazil, recognized nationally for its product excellence and performance under the brand Sementes Goiás. Tec Agro's annual sales amount to approximately USD 200 million and have about 500 employees serving thousands of farmers. The acquisition multiple is in line with Nutrien's past acquisitions for similar businesses in the U.S.
According to Chuck Magro, President and CEO of Nutrien, the acquisition of Tec Agro is an excellent strategic fit and, following the Agrosema transaction announced in January, is a significant next step in building platform on the key and growing Brazilian agricultural market.
This purchase is in order with a strategy to bring all-farm solutions to Brazilian customers. Nutrien's portfolio of products and services, combined with digital tools, helps us create new value for Brazilian farmers. Nutrien is excited to continue growth path and to increase presence in the country further.
Following the expected closure of the acquisition of Tec Agro, Nutrien Ag Solutions will operate 25 retail establishments in the states of São Paulo, Minas Gerais, and Goiás. Nutrien will own and operate two fertilizer blending facilities, the first soybean seed business and the Agrichem business, which produces specialties and foliar fertilizers, serving the entire country. Total annual normalized sales in Brazil are expected to be approximately USD 500 million after the completion of the Tec Agro acquisition.
Nutrien is the world's largest provider of inputs and services to crops, playing a pivotal role in helping growers sustainably increase food production. Nutrien produces and distributes 25 million tons of potash, nitrogen, and phosphate products world-wide. With this capability and a leading retail network of agriculture, Nutrien is well-positioned to meet the needs of customers. Nutrien operates with a long-term vision and is committed to working with stakeholders to address environmental, economic, and social preferences. The scale and diversity of integrated portfolio provide a stable basis for earnings, multiple opportunities for growth, and the opportunity to deliver capital to shareholders.
