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Nutrien Announces Agreement to Purchase Actagro
Missouri Ag Connection - 02/07/2019

Nutrien Ltd. (Nutrien) announced that it has entered into a definitive agreement to purchase 100 percent of the equity of Actagro, LLC (Actagro), a leading developer, manufacturer and marketer of environmentally sustainable soil and plant health products and technologies. Actagro's premier commercial portfolio includes approximately 30 specialty products that have a strong track-record of increasing crop productivity and financial returns for growers.

Actagro's products are produced at two U.S. manufacturing facilities located in California and Arkansas, and distributed across global agricultural markets through numerous retailers and distributors, including Nutrien's Retail business. The acquisition includes Actagro's strong research and development team, as well as a near-complete, world-class research and development facility located in California that will support the continued development of soil and plant health technologies.

"The acquisition of Actagro is aligned with Nutrien's strategy to invest in higher-margin proprietary products that provide strong value for growers. Actagro has a strong track record of developing and manufacturing high-value crop nutrition products and we see a significant opportunity to expand the business by leveraging the global reach of our Retail network and the expansion of Actagro's strong relationships with domestic and international distributors. Nutrien will continue to use its strong balance sheet and cash flow to prudently allocate capital towards growth opportunities that create value for our customers and our shareholders," commented Chuck Magro, Nutrien's president and CEO.

The purchase price is $340 million, including approximately $20 million in working capital, and is expected to be accretive to earnings in the first year. We expect the business to generate approximately US$55 million in run-rate EBITDA two years after close with the realization of synergies and organic growth opportunities. Closing of the transaction is subject to U.S. regulatory approval and is expected to be completed in the first half of 2019.

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