Nutrien Ltd. has entered into a definitive agreement to acquire Agrichem, which is a Brazilian specialty plant nutrition and plant health product company.
“As a leader in Brazilian specialty nutrient markets, the Agrichem team and extensive product profile will be an excellent fit with our Loveland products business,” says Chuck Magro, Nutrien’s President and CEO. “Brazil will be a strategic focus for further expansion due to its large and growing agriculture retail and crop input market.”
Agrichem is expected to be accretive to earnings in 2018, with total annual historic net sales of over $55 million and historic EBITDA of over $15 million. The acquisition will be made in two tranches, with 80 percent of the business to be acquired in the coming months. The remaining 20 percent of the business will be acquired in 2019, based on 2018 EBITDA levels.
Agrichem is one of Brazil’s largest liquid NPK fertilizer companies, as well as a producer and marketer of plant health products, including bio-stimulants and health inductors. The company has 195 employees and 35 product registrations actively marketed.
The company’s primary production facility is located close to key agricultural markets in Brazil, with an annual production capacity of almost 12 million litres.