(Reuters) – Top fertilizer maker Nutrien Ltd on Wednesday agreed to acquire Casa do Adubo S.A., as part of its ambitions to expand its Brazilian retail business.
The deal marks Nutrien’s sixth acquisition in Brazil since 2019, when it set a strategic goal to build its market share in a country that is vital to feeding a growing global population.
The buyout will cover 39 locations and 10 distribution centers, and will expand Nutrien’s footprint in Brazil to 13 states from five.
Nutrien did not disclose the financial terms of the Casa do Adubo deal.
However, the Saskatoon, Canada-based company said it expects its agricultural solutions unit’s Latin American annual sales to rise to about $2.2 billion, as a result of additional run-rate sales of about $400 million.
Upon closure of the deal, Nutrien expects to surpass its stated target of $100 million of adjusted core profit in Brazil by 2023, it added.
Once the deal is approved by Brazil’s anti-competition regulator, Nutrien will have 180 commercial units and over 3,500 employees in Latin America, across Argentina, Brazil, Chile and Uruguay.
(Reporting by Ruhi Soni in Bengaluru; Editing by Shailesh Kuber)