Nutrien (NYSE:NTR) said Wednesday it agreed to acquire Brazilian company Casa do Adubo, including 39 retail locations and 10 distribution centers, a move it said will support its retail growth strategy in the country; financial terms were not disclosed.
Nutrien (NTR) expects Casa do Adubo will result in $400M in additional run-rate sales, increasing total Nutrien Ag Solutions annual sales in Latin America to ~$2.2B.
Upon completion of the acquisition, Nutrien (NTR) expects to surpass its stated target of $100M 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,” the company said.
Nutrien (NTR) “is in a good spot to benefit from tight global potash supply, its own ability to boost production, enhance existing operations, and its short supply chains,” Leo Nelissen writes in a bullish analysis posted recently on Seeking Alpha.
