Adecoagro Announces Submission of Binding Offer to Acquire the Remaining 50% of Profertil S.A.

Core Viewpoint - Adecoagro S.A. has submitted a binding offer to acquire YPF's 50% stake in Profertil S.A., the largest producer of granular urea in South America, for approximately US$600 million, which is expected to enhance the company's scale and diversify its portfolio [1][2][5]. Acquisition Details - The offer is under similar terms to those previously agreed with Nutrien, and acceptance is subject to approval by YPF's Board of Directors in December 2025 [2]. - Upon completion, Adecoagro will control 90% of Profertil, with the remaining 10% held by Asociación de Cooperativas Argentinas [3]. Financial Aspects - The acquisition will be financed through existing cash balances, a new long-term credit facility, and proceeds from equity sales [3]. - Profertil has an annual 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, with an average annual EBITDA of approximately US$390 million from 2020 to 2024 [4]. Strategic Importance - The acquisition is seen as a significant milestone for Adecoagro, enhancing its position as a key supplier in the regional agricultural sector and integrating a business with strong fundamentals and consistent cash generation [5]. - Profertil's strategic location in Bahia Blanca, Argentina, provides access to competitively priced natural gas and electricity, reinforcing Adecoagro's commitment to operational excellence [5]. Operational Integration - The transaction is expected to be completed by December 31, 2025, after fulfilling customary closing conditions, and Profertil will be fully consolidated into Adecoagro's operations [5].