Nutrien to Acquire Brazilian Ag Retailer Casa do Adubo
20 Juli 2022 - 2:00PM
Business Wire
Nutrien Ltd. (TSX and NYSE: NTR) announced today that it has
entered into an agreement to acquire Brazilian company Casa do
Adubo S.A. (Casa do Adubo). The acquisition includes 39 retail
locations, under the brand Casa do Adubo, and 10 distribution
centers, under the brand Agrodistribuidor Casal, in the states of
Acre, Bahia, Espírito Santo, Maranhão, Mato Grosso, Minas Gerais,
Pará, Rio de Janeiro, Rondônia, São Paulo and Tocantins.
The transaction supports Nutrien’s Retail growth strategy in
Brazil. The acquisition of Casa do Adubo is expected to result in
additional run-rate sales of approximately US$400 million,
increasing total Nutrien Ag Solutions annual sales in Latin America
to approximately US$2.2 billion. Upon completion of the acquisition
of Casa do Adubo, Nutrien expects to surpass its stated target of
US$100 million of adjusted EBITDA in Brazil by 2023.
“The acquisition expands our footprint in Brazil from five
states to 13 and supports growers in a key region of the world that
will increasingly be relied on to sustainably increase crop
production and feed a growing population, especially with the
current global food insecurity challenges,” said Ken Seitz, Interim
President and CEO at Nutrien. “Our strong team in Brazil has
successfully closed and onboarded five transactions since 2020. We
expect that integrating Casa do Adubo will further enhance our
ability to provide whole-acre solutions for all customers in the
region while delivering quality earnings in this large and growing
market.”
The transaction is pending approval from the Administrative
Council for Economic Defense (CADE) in Brazil. Subject to approval
and completion of the acquisition, Nutrien will have 180 commercial
units in Latin America, including customer-facing retail branches
and experience centers, five industrial plants and four fertilizer
blenders. In addition, Nutrien will have more than 3,500 employees
in the region, including more than 700 crop consultants serving
growers in Argentina, Brazil, Chile, and Uruguay.
“We appreciate the reputation Casa do Adubo has earned for
delivering strong financial performance, attracting top talent and
offering quality products and services,” said André Dias, Nutrien's
Regional Leader in Latin America. “With the acquisition, we will
strengthen our existing presence and expand to serve additional
growers with innovative solutions that help sustainably feed the
world.”
About Nutrien
Nutrien is the world's largest provider of crop inputs and
services, playing a critical role in helping growers increase food
production in a sustainable manner. We produce and distribute
approximately 27 million tonnes of potash, nitrogen and phosphate
products world-wide. With this capability and our leading
agriculture retail network, we are well positioned to supply the
needs of our customers. We operate with a long-term view and are
committed to working with our stakeholders as we address our
economic, environmental and social priorities. The scale and
diversity of our integrated portfolio provides a stable earnings
base, multiple avenues for growth and the opportunity to return
capital to shareholders. Contact us at: www.nutrien.com
Forward-looking statements
Certain statements and other information included in this news
release constitute "forward-looking information" or
"forward-looking statements" (collectively, "forward-looking
statements") under applicable securities laws (such statements are
often accompanied by words such as "expect", "may", "will",
"estimate", or other similar words). All statements in this news
release, except those relating to historical information or current
conditions, are forward-looking statements, including, but not
limited to: expected benefits of the acquisition, including
expected impact on sales, 2023 Brazil Adjusted EBITDA target,
earnings, growth and expansion, and strategies as well as the
timing of the foregoing; and the ability to satisfy the conditions
to, and complete, the acquisition including obtaining required
regulatory approval.
Forward-looking statements in this news release are based on
certain key expectations and assumptions, many of which are outside
of Nutrien’s control. Although we believe that the expectations and
assumptions on which such forward-looking statements are based are
reasonable, undue reliance should not be placed on the
forward-looking statements because Nutrien can give no assurance
that they will prove to be correct. Key assumptions that have been
made include, among other things, assumptions with respect to our
ability to successfully integrate and realize the anticipated
benefits of the acquisition; that future business, regulatory and
industry conditions will be within the parameters expected by
Nutrien; and assumptions with respect to global economic
conditions.
Forward-looking statements are subject to various risks and
uncertainties, many of which are beyond our control and difficult
to predict, which could cause actual results or events to differ
materially from anticipated results or expectations expressed in
this news release including, but not limited to: the ability to
obtain, and obtain in a timely manner, the required regulatory
approval; the ability to otherwise satisfy the conditions to the
acquisition; the failure to successfully integrate and realize
expected benefits of the acquisition; general economic, market and
business conditions; and other risk factors detailed from time to
time in Nutrien reports filed with the Canadian securities
regulators and the Securities and Exchange Commission in the United
States. This news release contains certain information which
constitutes "financial outlook" under applicable Canadian
securities laws, including our 2023 Brazil Adjusted EBITDA target,
the purpose of which is to assist readers in understanding our
expected and targeted results, and this information may not be
appropriate for other purposes.
The forward-looking statements in this news release are made as
of the date hereof and Nutrien disclaims any intention or
obligation to update or revise any forward-looking statements in
this news release as a result of new information or future events,
except as may be required by applicable securities laws.
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