Nutrien has announced 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 centres, 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$100 million of adjusted EBITDA in Brazil by 2023.
Ken Seitz, Interim President and CEO at Nutrien said: “The acquisition expands our footprint in Brazil from five states to 13 and supports growers in a key region of the world that will increasingly be relied on to sustainably increase crop production and feed a growing population, especially with the current global food insecurity challenges. Our strong team in Brazil has successfully closed and onboarded five transactions since 2020. We expect that integrating Casa do Adubo will further enhance our ability to provide whole-acre solutions for all customers in the region while delivering quality earnings in this large and growing market.”
The transaction is pending approval from the Administrative Council for Economic Defense (CADE) in Brazil. Subject to approval and completion of the acquisition, Nutrien will have 180 commercial units in Latin America, including customer-facing retail branches and experience centres, five industrial plants and four fertilizer blenders. In addition, Nutrien will have more than 3500 employees in the region, including more than 700 crop consultants serving growers in Argentina, Brazil, Chile, and Uruguay.
André Dias, Nutrien's Regional Leader in Latin America commented: “We appreciate the reputation Casa do Adubo has earned for delivering strong financial performance, attracting top talent and offering quality products and services. With the acquisition, we will strengthen our existing presence and expand to serve additional growers with innovative solutions that help sustainably feed the world.”
Read the article online at: https://www.worldfertilizer.com/project-news/20072022/nutrien-to-acquire-brazilian-ag-retailer-casa-do-adubo/
You might also like
Worldwide demand for fertilizer additives accounts for a market valuation of US$ 3.34 billion in 2023 and is forecasted to reach US$ 4.7 billion by 2033-end. Over the next ten years, the global fertilizer additives market is projected to rise at 3.4% CAGR.