Adecoagro to Acquire 50% Stake in Profertil, Largest Granular Urea Producer

Adecoagro S.A. has announced a deal to acquire a 50% stake in Profertil S.A., the largest producer of granular urea in South America. The acquisition is part of Adecoagro's growth strategy and will expand its agricultural and energy business. The terms of the deal were not disclosed.

Adecoagro S.A. (NYSE: AGRO), a prominent agro-industrial company, has announced a strategic acquisition of a 50% stake in Profertil S.A., the largest producer of granular urea in South America. The deal, which is part of Adecoagro's growth strategy, will expand the company's agricultural and energy business. The terms of the acquisition were not disclosed.

Profertil S.A., based in Argentina, operates an industrial complex in Bahía Blanca, with an annual production capacity of approximately 1.3 million metric tons of urea and 790,000 metric tons of ammonia. The company supplies about 60% of Argentina's urea consumption and generated an average annual EBITDA of approximately $390 million between 2020 and 2024.

The acquisition will be executed through an 80%-20% partnership between Adecoagro and Asociación de Cooperativas Argentinas (ACA). The purchase price is expected to be approximately $600 million, with the transaction anticipated to close before the end of 2025, subject to customary conditions. YPF S.A., Argentina's largest oil and gas producer, owns the remaining 50% stake in Profertil and holds a 90-day right of first refusal to purchase Nutrien’s equity under the same terms.

The acquisition is expected to enhance Adecoagro's operational efficiency and financial health. Adecoagro's strong performance is evidenced by its 17.41% revenue growth and $280.31 million in EBITDA over the last twelve months. The company's current ratio of 1.9 indicates strong liquid assets coverage of short-term obligations.

Mariano Bosch, Co-Founder and Chief Executive Officer of Adecoagro, stated, "This transaction constitutes a strategic opportunity for Adecoagro. We believe this acquisition is an excellent fit for our agro-industrial platform, enabling us to continue diversifying our operations."

Rabobank is acting as the sole financial advisor to Adecoagro/ACA for the transaction. The company will host a conference call on September 9 to discuss the transaction further.

The acquisition of Profertil S.A. aligns with Adecoagro's long-term strategy to expand its agricultural and energy footprint. The company's recent financial results, however, show a revenue shortfall in the second quarter of 2025, with revenue falling short of analysts' forecasts. Despite this, the acquisition of Profertil S.A. is expected to bolster Adecoagro's growth prospects.

References:
Nutrien Agrees to Divest 50% Stake in Profertil for $600 Million^[1] https://www.nasdaq.com/articles/nutrien-agrees-divest-50-stake-profertil-600-million
Adecoagro to acquire 50% stake in South American urea ...^[2] https://www.investing.com/news/company-news/adecoagro-to-acquire-50-stake-in-south-american-urea-producer-93CH-4228607