Adecoagro to Acquire Best in Class Urea Producer.
Adecoagro, a leading sustainable production company in South America announces it has signed an agreement to acquire Nutrien Ltd.’s 50% interest in Profertil S.A. (“Profertil”), the largest producer of granular urea in South America. The remaining 50% stake of Profertil is owned by YPF S.A. the largest oil and gas producer of Argentina.
Adecoagro will execute this acquisition through an 80%-20% partnership with Asociación de Cooperativas Argentinas (“ACA”). The transaction is subject to customary closing conditions and is expected to be completed before the end of 2025. Under the Profertil shareholder agreement, the remaining 50% equity owner holds a 90-day right of first refusal to purchase Nutrien’s equity on the same terms and conditions. The purchase price for Nutrien’s shares in Profertil is expected to be approximately US$600 million.
Profertil is one of the most cost-efficient producers of urea and ammonia globally. With an annual capacity of approximately 1.3 million metric tons of urea and 790 thousand metric tons of ammonia, the company supplies approximately 60% of Argentina’s urea consumption. Its state-of-the-art industrial complex in Bahía Blanca—Argentina’s most important petrochemical hub—enjoys access to competitively priced natural gas and electricity. Profertil has a fully dollarized revenue business given the export nature of the product. The company generated an average annual EBITDA of approximately US$390 million over the 2020-2024 period.
“This transaction constitutes a strategic opportunity for Adecoagro” said Mariano Bosch, Co-Founder and Chief Executive Officer of Adecoagro. He added “Profertil is one of the best companies in Argentina, strategically located with access to competitive gas supply, in a region that is a net importer of urea. At Adecoagro we have always focused on being the lowest-cost producer, and Profertil shares this same philosophy. We believe this acquisition is an excellent fit for our agro-industrial platform, enabling us to continue diversifying our operations and reduce volatility in our results.”
Mr. Bosch remarked: “Profertil owns modern, efficient assets and is managed by a highly experienced team with more than 20 years of proven performance. We are convinced that Adecoagro/ACA is the right partner to help Profertil continue growing and strengthening its leadership, and we see strong complementarity with YPF in this new partnership.” Bosch continued: “I am also happy to have partnered with ACA, a cooperative with whom we have a long and successful relationship. Doing this project together reinforces our commitment to build sustainable, competitive, and value-adding agribusinesses in Argentina and South America.”
Juan Sartori, Head of Business Initiatives of Tether and Chairman of Adecoagro’s Board of Directors, commented: “We are very pleased to support Adecoagro in this important step. Profertil is a company with an outstanding track record, strong fundamentals, and a clear strategic role in Argentina and South America. We believe this transaction will create value for all stakeholders, and we are confident that Adecoagro, together with its partners, will take Profertil to the next stage of development.”
Rabobank is acting as sole financial advisor to Adecoagro/ACA.
