Agrium Inc. has completed a strategic review of its Agrium Advanced Technologies (AAT) business unit as part of its on-going focus on optimizing its business. As a result of the review process, Agrium has decided to transition to two Strategic Business units, Wholesale and Retail, in the first quarter of 2014.
AAT’s agriculture business, which is comprised of Environmentally Smart Nitrogen (“ESN”) and micronutrients, will become part of Agrium’s Wholesale business unit to more effectively leverage Wholesale’s strengths in manufacturing and distribution. Both micronutrients and ESN were part of Agrium Wholesale prior to the creation of AAT. ESN in particular will remain a key premium product offered by Agrium, given the strong growth in demand for this industry leading and environmentally friendly product.
The Turf and Ornamental and Direct Solutions businesses are under further strategic review with all options, including divesture, being considered. The review is expected to be completed in the first half of 2014.
Agrium will provide further communication and clarity on this matter, including the impact of any reorganization cost, as the company works through the transition in the next few months, according to a news release on its Website. A key component of the transition plan will be to execute the changes seamlessly and minimize business disruption for customers, suppliers and employees. This reorganization is expected to have a positive net benefit to Agrium’s on-going earnings profile.
Source: Agrium news release