The Canada-based agricultural company, Agrium, Inc., has declared that it intends to further expand its business in Australia controlled release fertilizers market. In this regard, the company has also further stated its decision to acquire Macrofertil, an Australia based fertilizer distribution business from the Louis Dreyfus Company.
For the uninitiated, Macrofertil, with approximately USD 120 million in annual sales, comes under the umbrella of Louis Dreyfus Company, an agriculture and food processing firm headquartered in Amsterdam, Netherlands, with a modest share in the regional controlled release fertilizers market share. The acquisition would be taking place through Landmark Operations, Ltd., Agrium’s Australia based agricultural retail business that offers agricultural merchandise, crop inputs, and agronomic services for finance, insurance, wool and livestock sales, and real estate. The subsidiary apparently has a clientele of close to 100,000 over 400 locations.
The acquisition is inclusive of six fertilizer storage & distribution units, complete with coating and blending capabilities, while the business boasts of annual sales surpassing 300,000 tons. Macrofertil’s acquisition thus, may prove to be massively beneficial for Agrium to consolidate its presence in Australia controlled release fertilizers industry, cite experts.
As per Chuck Magro, Agrium’s CEO and President, this takeover comprising high quality assets will help to complement Agrium’s already existing retail business in Australia, while further enabling the company to improvise considerably on its product and service portfolio for existing and new customers of Landmark Operations.
If sources are to be believed, Agrium’s takeover of Macrofertil is anticipated to close in Q1 2018, and is subject to the customary conditions standardized for deal closures.
For the uninitiated, Agrium Inc., headquartered in Calgary, is a key manufacturer and distributor of agricultural solutions, products, and services. The controlled release fertilizers market player boasts of a retail distribution network of 1,500 units and strives to increase its focus on sustainability practices in agriculture.