Calgary, Alberta, Canada
November 24, 2009
Agrium Inc. (TSX and NYSE: AGU) announced today it has further expanded its Retail operations in Texas and New Mexico with the acquisition of 24 retail outlets (18 farm centers and 6 satellites) from Agriliance.
Under the agreement, Agrium acquired the retail outlets and associated working capital at these locations, as well as over 50,000 tons of fertilizer storage. The retail outlets are expected to have annual crop input revenues of approximately $150-million.
“We believe that this acquisition will be immediately accretive to earnings”, said Mike Wilson, Agrium President and CEO. “We are committed to deliver on our strategic growth objectives of doubling the size of our Retail business, and this acquisition is a reaffirmation of that commitment. The purchase of these retail outlets will enhance our ability to serve customers in these states and we look forward to working with the farmers there.”
“I would also like to make clear, that this acquisition of retail outlets by no means signals that Agrium has lost any of its focus on acquiring CF Industries Holdings, Inc. (“CF”). We remain committed to the proposed combination with CF, as well as growing all of the company’s business units through expansion of existing operations and acquisitions.”
Agrium Inc. is a major retail supplier of agricultural products and services in both North and South America and a leading global producer and marketer of agricultural nutrients and industrial products. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. Agrium’s strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities. Contact us at www.agrium.com.
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