Adecoagro to Acquire Majority Stake in Profertil, Largest Urea Producer in South America

Adecoagro S.A. has agreed to acquire Nutrien Ltd.'s 50% stake in Profertil S.A., the largest producer of granular urea in South America, for approximately $600 million. The acquisition is expected to be completed before the end of 2025 and will be executed through an 80%-20% partnership with Asociación de Cooperativas Argentinas. Profertil has an annual capacity of 1.3 million metric tons of urea and 790 thousand metric tons of ammonia and generated an average annual EBITDA of approximately $390 million over the 2020-2024 period.

Adecoagro S.A. has agreed to acquire Nutrien Ltd.'s 50% stake in Profertil S.A., the largest producer of granular urea in South America, for approximately $600 million. The acquisition is expected to be completed before the end of 2025 and will be executed through an 80-20 partnership with Asociación de Cooperativas Argentinas (ACA). Profertil has an annual capacity of 1.3 million metric tons of urea and 790,000 metric tons of ammonia, and generated an average annual EBITDA of approximately $390 million over the 2020-2024 period [1].

Nutrien, the global provider of crop inputs and services, has stated that the sale of its equity stake in Profertil aligns with its strategy to focus on core assets and geographies. The proceeds from the sale will be allocated to initiatives such as targeted growth investments, share repurchases, and debt reduction, aimed at enhancing Nutrien's earnings and supporting long-term growth in free cash flow [1].

The transaction is subject to customary closing conditions and is expected to be completed by the end of 2025. Under the Profertil shareholder agreement, the remaining 50% equity owner, YPF S.A., has a 90-day right of first refusal to purchase Nutrien's equity on the same terms and conditions [1].

This acquisition will strengthen Adecoagro's position in the agricultural sector while diversifying its operations. Profertil supplies about 60% of Argentina's urea consumption and is a significant player in the global urea market [2].

References:
[1] https://www.stocktitan.net/news/NTR/nutrien-announces-agreement-for-sale-of-equity-position-in-profertil-o2e42p1dcjgi.html
[2] https://www.stocktitan.net/news/AGRO/adecoagro-to-acquire-best-in-class-urea-mfecxqrjyuf1.html