Adecoagro to Acquire Best in Class Urea Producer

Core Viewpoint - Adecoagro S.A. has signed an agreement to acquire Nutrien Ltd.'s 50% interest in Profertil S.A., the largest producer of granular urea in South America, for approximately US$600 million, through an 80%-20% partnership with Asociación de Cooperativas Argentinas (ACA) [1][2][3] Company Overview - Adecoagro is a leading sustainable production company in South America, owning 210.4 thousand hectares of farmland and producing over 3.1 million tons of agricultural products and over 1 million MWh of renewable electricity [9] - Profertil, co-owned by YPF S.A. and Nutrien Ltd., has an annual production capacity of approximately 1.3 million metric tons of urea and 790 thousand metric tons of ammonia, supplying about 60% of Argentina's urea consumption [3][6] Strategic Importance - The acquisition is viewed as a strategic opportunity for Adecoagro, enhancing its agro-industrial platform and enabling diversification of operations while reducing volatility in results [4] - Profertil's efficient production capabilities and access to competitively priced natural gas position it as a key player in a region that is a net importer of urea [4][6] Financial Aspects - The average annual EBITDA generated by Profertil from 2020 to 2024 was approximately US$390 million, indicating strong financial performance [3] - The transaction is subject to customary closing conditions and is expected to be completed before the end of 2025 [2] Partnership Dynamics - The partnership with ACA is highlighted as a long-standing and successful relationship, reinforcing the commitment to building sustainable agribusinesses in Argentina and South America [4] - The remaining 50% equity owner, YPF, holds a 90-day right of first refusal to purchase Nutrien's equity on the same terms [2]