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Agrium to buy Cargill's ag-retail business in US

RBR Staff Writer Published 08 July 2016

Agrium, a major retail supplier of agricultural products and services, has agreed to acquire Cargill’s US Ag-Retail business.

Agrium's Crop Production Services (CPS) signed a binding purchase agreement with Cargill AgHorizons (U.S.) for the acquisition of 18 ag-retail locations with annual revenues of more than $150m.

The stores are spread across northern US states of Nebraska, South Dakota, Minnesota, Wisconsin, Michigan and Indiana, which fall under the corn-belt region.

Financial details about the transaction have not been disclosed. The transaction is subject to customary closing conditions and regulatory clearances which are expected to close by the end of third quarter of 2016.

The deal will not include Cargill's Canadian crop input retail business.

Agrium president and CEO Chuck Magro said: "This acquisition demonstrates our continued focus on growing our North American ag-retail business, particularly in the highly desirable U.S. Corn Belt. The locations are in regions where we currently have a limited presence.

"This acquisition will allow us to capitalize on synergies related to the introduction of our proprietary products and services, and leveraging our extensive distribution network.

Magro added: "We welcome the Cargill ag-retail employees to the Agrium family and are excited to bring our agronomic expertise and quality products and services to growers in this important agricultural region."

Cargill, for some time has been focussing on its operations by exiting from low-margin businesses and entering into high-margin businesses including food ingredients and aquaculture.

Cargill North American agricultural supply chain group leader Roger Watchorn said: "Cargill will focus on being the world's leading merchant of grain and oilseeds.

"We remain steadfast in our commitment to help farmers succeed by ensuring they remain competitive in the global market and being as efficient as possible in getting products from origins to destinations."