Nutrien acquires Australia’s Ruralco for $335 million

Nutrien Ltd. has announced that it has concluded a binding agreement with Ruralco Holdings Limited to acquire Ruralco for roughly $335 million.

“The combination of our Landmark operations with Ruralco in Australia is expected to provide significant benefits for all stakeholders including delivering excellent value for both Ruralco and Nutrien shareholders. The acquisition is anticipated to be immediately accretive to Nutrien and is expected to have a post-synergy EBITDA multiple of 5.6 based on 2018 results,” stated Nutrien President and CEO Chuck Magro.

The head of Landmark, Rob Clayton, commented that, “The combined business will further strengthen the service and innovation that Landmark delivers to Australian growers. With an outstanding team across Australia and access to Nutrien’s expertise, we will provide enhanced solutions and greater value to help Australian growers in an increasingly competitive global market.”

The agreement requires Ruralco shareholder approval and regulatory approval from the Australia Competition and Consumer Commission and the Australian Foreign Investment Review Board.

Under the deal, Nutrien Ltd has agreed to pay $4.40 Australian dollars per share of Ruralco’s 105,052,247 ordinary shares resulting in a purchase price of A$469 million.

About Nutrien: Nutrien Ltd. produces crop nutrients and markets them around the world. The company offers potash, nitrogen, solid and liquid phosphate fertilizers and phosphate feed, ammonium sulfate and industrial acid products. It also retails seeds, crop protection and crop nutrients, commodity products and agricultural services at 1,500 retail sites. The company was established in 2017 and is based in Saskatoon, Canada.

About Ruralco Holding: Ruralco Holdings Limited sells and markets consumer goods, fertilizers, water products, and financial services products
to Australia’s rural.