Agrium acquire majority stake in Viterra’s Agri-products from Glencore
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Agrium to acquire majority stake in Viterra’s Agri-products from Glencore

9:33 PM, 20th March 2012
Agrium to acquire majority stake in Viterra’s Agri-products from Glencore
Mike Wilson, President and CEO, Agrium.

ALBERTA, CANADA: Agrium Inc has entered into a definitive agreement with Glencore International plc to acquire the majority of Viterra’s Agri-products business upon completion of Glencore’s recently announced supported acquisition of Viterra. Under the agreement, Agrium would acquire approximately 90 per cent of Viterra’s Canadian retail facilities, all of its Australian retail facilities, as well as their minority position in a nitrogen facility located in Medicine Hat, Alberta.

The acquisition price from Glencore is approximately $1.15 billion plus working capital, in a back-to-back purchase and sale arrangement. Average working capital needed for this business is estimated to be approximately $0.5 billion. In 2011, Viterra’s total Agri-products business generated $2.4 billion in revenue and $244 million in 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. The acquisition is expected to be immediately accretive upon completion and will provide significant growth for our retail operations, in particular, supporting our goal of reaching $1billion in EBITDA from our global retail business by 2015,” said Mike Wilson, President and CEO, Agrium.

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