Tec Agro is a major Brazilian Ag retailer that has been serving farmers for 25 years
Nutrien has agreed to acquire Brazilian agricultural retailer Tec Agro. (Credit: Gerd Altmann from Pixabay)
Nutrien, a provider of crop inputs and services, has agreed to acquire Brazilian Ag retailer and soybean seed producer Tec Agro for an undisclosed sum.
Tec Agro, a major Ag retailer in the state of Goiás, has been serving farmers for 25 years and operates eight retail branches.
Tec Agro also manages soybean seeds businesses in Brazil
Tec Agro also manages soybean seeds businesses under the Sementes Goiás brand in Brazil.
With annual sales of around $200m, the company employs around 500 people that serve thousands of farmers in the country,
Nutrien said that the acquisition in line with Nutrien’s past acquisitions in the US for similar businesses.
Nutrien Brazil managing director and vice president André Dias said: “This acquisition fits with our strategy to bring whole-farm solutions to our Brazilian customers. Our products and services portfolio, combined with our digital tools, are helping us create new value for Brazilian farmers.”
Nutrien Ag Solutions will manage 25 retail facilities in the states of São Paulo, Minas Gerais and Goiás, upon the completion of Tec Agro acquisition.
Nutrien will own and manage two fertiliser blending facilities and the premier soybean seed business, as well as the Agrichem business that produces specialities and foliar fertilisers for the customers in the country.
The company’s total normalised Brazilian annual sales are expected to be around $500m after the acquisition of Tec Agro is completed.
According to Nutrien, the closing of the deal is subject to approval by the Administrative Council for Economic Defense (CADE) and the satisfaction of other customary closing conditions.
Nutrien president and CEO Chuck Magro said: “The Tec Agro acquisition is an excellent strategic fit and, following the Agrosema transaction announced in January, is a great next step in building our platform in the important and growing Brazilian agricultural market.”
In January, Nutrien agreed to acquire a 100% stake in Brazilian agricultural (Ag) retailer Agrosema Comercial Agricola.
Nutrien produces and supplies 25 million tonnes of potash, nitrogen and phosphate products across the world.