Agrium Continues Retail Growth
Agrium Inc. has established 33 retail outlets in Alberta and Saskatchewan, Canada, which will be branded under the Crop Production Services (Canada) Inc. name.
Agrium has purchased the remaining crop nutrient assets that it did not previously own from five Engro franchise dealers and an existing joint venture, with 27 locations in southern and central Alberta and six locations in southern Saskatchewan.
The retail outlets have annual revenues of approximately $162-million.
“These acquisitions are an important part of our retail growth strategy and are expected to be accretive to earnings in 2010”, says Mike Wilson, Agrium president and CEO. “The purchase of these retail assets marks our entrance into the Canadian retail market and will enhance our ability to serve all our customers in these regions.
Agrium has been in the retail crop input business in the U.S. for approximately 17 years under the brand name of Crop Production Services and this move into Canada is in line with our goal of doubling our retail EBITDA in the future and providing further diversity in our retail business. We will continue to look at selective retail opportunities as they arise.”
Over the past six months, Agrium has acquired more than 60 farm centers in the U.S. and Canada, with more than $350 million in revenues.
This includes the series of transactions noted above, the acquisition of 24 retail outlets from Agriliance in December 2009, and four other independent outlets in the U.S.