June 6, 2011


Agrium reaches agreement to acquire Tetra Micronutrients



Agrium Inc. has reached a binding agreement on the acquisition of International Mineral Technologies ("Tetra Micronutrients").


Tetra Micronutrients is located in Fairbury, Nebraska and specialises in the production, marketing and distribution of custom liquid plant nutrition and dry micro nutrient products, predominantly zinc sulphate.


Total annual revenues are over US$60-million, US$24 million in liquid nutrient sales and about US$40 million in dry products.


Agrium will integrate this business into its Agrium Advanced Technologies (AAT) and Loveland Products proprietary brand businesses. AAT will operate and market product from the dry granular production facility, as well as marketing liquid plant nutrition products to third party customers. Loveland Products will operate the liquid facility and market these liquid plant nutrition products to Agrium Retail customers.


The acquisition was made at a multiple similar to other recent retail acquisitions in North America, with a pre-synergy EV/EBITDA multiple of approximately five.


"The acquisition of Tetra Micronutrients is another example of a strong strategic fit within our existing Retail and Advanced Technologies businesses that will strengthen our product lines for the benefit of our customers, while offering significant synergy potential," said Agrium's president and CEO, Mike Wilson.


The transaction is expected to close by mid-July 2011.

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