Agrium to buy Louis Dreyfus fertilizer business in Australia

Agrium to buy Louis Dreyfus fertilizer business in Australia

Dec. 12, 2017 12:18 PM ET|About: Agrium Inc. (AGU)|By: Carl Surran, SA News Editor 

Agrium (AGU +3%) moves higher after agreeing to acquire the Australian fertilizer business of commodities trader Louis Dreyfus for an undisclosed sum.

Macrofertil's Austrlaian network includes six fertilizer storage and distribution assets with coating and blending capabilities, and has annual volumes of more than 300K metric tons with $120M/year in sales.

AGU says the acquisition will complement its existing network of ~400 sites in Australia.

In another note: Agrium Inc. announced today 12 December a binding purchase agreement between its Australian ag-retail business, Landmark Operations, Ltd. (Landmark), and Louis Dreyfus Company (LDC) for the acquisition of Macrofertil, a fertilizer distribution business in Australia with approximately $120 million in annual sales. The business includes six fertilizer storage and distribution assets with coating and blending capabilities, and its annual sales exceed 300,000 t. 

"This network of high quality assets will complement our existing Retail footprint in Australia, and allow us to enhance our product and service offering for new and existing Landmark customers," commented Agrium's President and CEO, Chuck Magro.

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