Nutrien announced that it has entered into a definitive agreement to purchase 100 percent of the equity of the Tec Agro Group (“Tec Agro”).
Tec Agro is a leading Ag Retailer in the state of Goiás, with close to 25 years of service to farmers and 8 Retail branches. Tec Agro also owns one of the largest branded soybean seeds businesses in Brazil, recognized nationally for its product quality and performance, under the Sementes Goiás brand. The annual sales of Tec Agro are approximately US$200 million and it has about 500 employees servicing thousands of farmers. The acquisition multiple is in-line with Nutrien’s past acquisitions in the U.S. for similar businesses.
“The Tec Agro acquisition is an excellent strategic fit and, following the Agrosema transaction announced in January, is a great next step in building our platform in the important and growing Brazilian agricultural market.”
said Chuck Magro, President and CEO of Nutrien.
“This acquisition fits with our strategy to bring whole farm solutions to our Brazilian customers. Our products and services portfolio, combined with our digital tools, are helping us create new value for Brazilian farmers. We are excited to continue our path of growth and further increase our presence in the country.”
said André Dias, Vice President and Managing Director of Nutrien in Brazil.
After the anticipated closure of Tec Agro acquisition, Nutrien Ag Solutions will operate 25 retail facilities in the states of São Paulo, Minas Gerais and Goiás. It will own and operate two fertilizer blending facilities, a premier soybean seed business and the Agrichem business, which produces specialties and foliar fertilizers, servicing the entire country. Its total normalized annual sales in Brazil is expected to be approximately $500 million after the Tec Agro acquisition is complete.
Closing of the transaction is subject to approval by the Administrative Council for Economic Defense (CADE) and the satisfaction of other customary closing conditions.