Agrium expands European fertilizer distribution with purchase of CerealToscana and Agroport
Release Date: 5/2/2011 12:00:00 AM
CALGARY, Alberta - Agrium Inc. (TSX and NYSE: AGU) announced today that it successfully concluded the purchase of a 100% equity position in CerealToscana S.A., a fertilizer distribution company in Italy and Agroport, its subsidiary in Romania. The purchase price is $27-million plus working capital. The combined companies have a stable financial record with gross sales of approximately $200-million and an average EBITDA of $8-million over the past three years, before anticipated synergies.
CerealToscana and Agroport have 90,000 tonnes of storage with key distribution assets in Livorno and Ravenna, Italy and along the Danube in Romania. They sell an estimated 400,000 tonnes of fertilizer per year including commodity and specialty products.
“This acquisition is complementary to Agrium Europe’s existing fertilizer distribution business in Europe, significantly expanding our presence in Italy and providing an opportunity for entry into the growing Romanian agricultural market. This also allows Agrium to further leverage the value of our marketing off-take agreement of urea from our Egyptian nitrogen facility which is expected to commence in mid-2012. CerealToscana and Agroport are well respected Agro-industry organizations and will provide Agrium with a wealth of knowledge in these countries,” stated Agrium President & CEO, Mike Wilson.
Including this purchase, Agrium Europe currently leases and owns 400,000 tonnes of dry and liquid storage in Europe with expected annual sales of 2.8 million tonnes of all three major nutrients.