Adecoagro offers to acquire 50% of Profertil S.A.

This binding offer was submitted under the same terms and conditions to those previously agreed between Adecoagro and Nutrien, including a purchase price of approximately US$600 million. In relation to the acquisition of Nutrien's 50 % interest in Profertil S.A., the main precedent conditions are fulfilled.

Adecoagro's offer acceptance by YPF was subject to approval by YPF's Board of Directors to be held in December 2025.

Upon consummation of this acquisition Adecoagro will become the controlling shareholder of Profertil owning 90% of the total share capital. The remaining 10% will be held by Asociación de Cooperativas Argentinas.

The company will finance the transaction through a combination of existing cash balances, a new long term credit facility which has already been committed, and proceeds from the sale of equity.

Profertil is a low-cost producer of urea and ammonia globally. With an annual capacity of approximately 1.3 million t of urea and 790 000 t of ammonia, the company supplies approximately 60% of Argentina's urea consumption. Its state-of-the-art industrial complex located in the city of Bahía Blanca – Argentina's most important petrochemical hub – enjoys access to competitively priced natural gas and electricity. Profertil has a fully dollarised revenue business given the export nature of the product. The company generated an average annual EBITDA of approximately US$390 million over the 2020-2024 period.

Mariano Bosch, Co-Founder and CEO of Adecoagro, stated: "This transaction marks a significant milestone for Adecoagro, enhancing our scale, diversifying our portfolio, and strengthening the company's long-term performance. Supported by our principal shareholder, we are leveraging Argentina's competitive advantages to drive sustainable growth and value creation for our stakeholders. The acquisition of Profertil positions Adecoagro as a key supplier to the regional agricultural sector, integrating a business with robust fundamentals and consistent cash generation. Profertil's strategic location, with direct access to Argentina's competitive natural gas resources, further reinforces our commitment to operational excellence and long-term resilience."

Juan Sartori, Head of Special Projects of Tether and Chairman of Adecoagro's Board of Directors, added: "As we have consistently stated, Adecoagro combines high-quality, low-cost production assets with a strong and experienced management team. This acquisition accelerates the company's growth trajectory and reinforces its ability to deploy capital in a disciplined and high-return manner. At Tether, we are excited to support Adecoagro in this strategy. Profertil is a best-in-class company, essential to Argentina and South America's agricultural production chain, and we believe its integration will significantly enhance Adecoagro's platform by increasing exposure to sustainable, real assets that create long-term value."

The transaction is subject to customary closing conditions and is expected to be completed by 31 December 2025. Upon completion, Profertil will be fully consolidated into Adecoagro's operations, strengthening the company's integrated model and enhancing its ability to secure key inputs that are essential to the region's agricultural and food-production sectors.

Read the article online at: https://www.worldfertilizer.com/nitrogen/03122025/adecoagro-offers-to-acquire-50-of-profertil-sa/