Nutrien Buys Brazil’s Casa do Adubo
Canadian fertilizer producer Nutrien has agreed to buy Brazil’s Casa do Adubo, boosting its growth in both Brazil and the Latin American region. Financial terms were not revealed.
The acquisition includes 39 retail locations under the Casa do Adubo brand along with 10 distribution centers under the brand Agrodistribuidor Cadal in the states of Acre, Bahia, Espírito Santo, Maranhão, Mato Grosso, Minas Gerais, Pará, Rio de Janeiro, Rondônia, São Paulo and Tocantins.
Nutrien expects the takeover to result in additional run-rate sales of about $400 million, increasing its annual sales in Latin America to roughly $2.2 billion. Upon completion, Nutrien anticipates surpassing its stated target of $100 million of adjusted EBITDA in Brazil by 2023.
“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,” said Ken Seitz, interim president and CEO at Nutrien. “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.”
Nutrien did not say when it expects the transaction to close. Subject to regulatory approval and completion of the deal, Nutrien will have 180 commercial units in Latin America, including customer-facing retail branches and experience centers, five industrial plants and four fertilizer blenders.
Author: Elaine Burridge, Freelance Journalist
