Earlier this week Nutrien announced it entered a definitive agreement to purchase Actagro, LLC. Actagro develops, manufactures and marketer of soil and plant health products and technologies.
Nutrien will gain 100% equity of Actagro including two U.S. manufacturing facilities in California and Arkansas with products distributed through global retailers and distributors. The acquisition will include Actagro’s research and development team and a research and development facility in California that will support continued development of plant and soil health technologies.
“The acquisition of Actagro is aligned with Nutrien’s strategy to invest in higher-margin proprietary products that provide strong value for growers,” said Chuck Magro, Nutrien president and CEO in a recent press release. “Actagro has a strong track record of developing and manufacturing high-value crop nutrition products and we see a significant opportunity to expand the business by leveraging the global reach of our retail network and the expansion of Actagro’s strong relationships with domestic and international distributors.”
The acquisition will cost $340 million; that includes $20 million in working capital. Nutrien expects the deal to close in the first half of 2019, pending U.S. regulatory approvals.