Fertilizer company Nutrien says it has entered into a deal to buy Brazilian retailer Casa do Adubo S.A., as part of its plan to expand its Brazilian retail business.
The acquisition includes 39 retail locations, under the brand Casa do Adubo, and 10 distribution centers, under the brand Agrodistribuidor Casal, in the states of Acre, Bahia, Espírito Santo, Maranhão, Mato Grosso, Minas Gerais, Pará, Rio de Janeiro, Rondônia, São Paulo and Tocantins.
The deal marks Nutrien's sixth acquisition in Brazil since 2019, when it set a strategic goal to build its market share in the country
The Canada-based company said it expects its agricultural solutions unit's Latin American annual sales to rise to about $2.2 billion, as a result of additional run-rate sales of about $400 million. Financial terms of the deal have not been disclosed.
“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.
The transaction is pending approval from the Administrative Council for Economic Defense (CADE) in Brazil.
Subject to approval and completion of the acquisition, Nutrien will have 180 commercial units in Latin America, including customer-facing retail branches, five industrial plants and four fertilizer blenders. In addition, Nutrien will have more than 3,500 employees in the region.
Nutrien is the world's largest provider of crop inputs and services. The company produces and distributes approximately 27 million tonnes of potash, nitrogen and phosphate products world-wide.
Casa do Adubo is an agricultural company with a network of retail stores offering products for gardening, farming and farm livestock.
