This excerpt taken from the AGU 6-K filed Apr 10, 2008.
FOR IMMEDIATE RELEASE
Agrium To Acquire European Distribution Network
April 10, 2008 ALL AMOUNTS ARE STATED IN U.S.$
CALGARY, Alberta Agrium Inc. (TSX and NYSE: AGU) announced today that it has entered into an
exclusive agreement to acquire a 70 percent equity position in Common Market Fertilizers S.A.
(CMF), one of Western Europes largest fertilizer distribution companies. CMF has annual sales
revenues of $500 to $600 million, crop nutrient sales volumes of 2 to 2.5 million tonnes and an
annual EBITDA of approximately $10-million.
The purchase price for 70 percent of the business is $16-million plus working capital of
approximately $50-million. The transaction is expected to close in the second quarter of 2008,
subject to concluding a definitive purchase and sale agreement, due diligence and regulatory
approval. Oscar Geyer will remain as CEO of CMF, and will continue to hold an equity position in
This acquisition is a key step in our global wholesale distribution strategy. Europe will be a
key end-market for product from our Egyptian nitrogen facility, which is currently under
construction. CMF provides us with important access to major distribution assets across Europe,
expansion of our sourcing footprint into Eastern Europe, as well as one of Europes most
experienced teams in fertilizer logistics, distribution, purchasing and sales. Agrium will become
one of the largest global distributors by combining volumes from our Egyptian production, our North
American purchase for resale business and volumes from CMF, said Mike Wilson, Agriums President
CMF has developed a large base of 1,500 customers, including retailers and cooperatives, across
Europe over the past 24 years. It operates through subsidiaries in France, Germany, Belgium, the
UK, Italy and Bulgaria, and it also markets product in Spain, the Netherlands, Ireland, Greece,
Denmark and South America. CMF owns and leases over 300,000 tonnes of dry and liquid storage at
both port and inland sites across much of Europe. CMFs head office is located in Brussels,
Belgium. The privately-owned company currently has about 60 employees located across Europe.
Agrium Inc. is a major retail supplier of agricultural products and services in both North and
South America and a leading global producer and marketer of agricultural nutrients and industrial
products. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and
potash as well as controlled release fertilizers and micronutrients. Agriums strategy is to grow
through incremental expansion of its existing operations and acquisitions as well as the
development, commercialization and marketing of new products and international opportunities.
Certain statements in this press release constitute forward-looking statements. Such
forward-looking statements involve known and unknown risks and uncertainties, including those
referred to in the management discussion and analysis section of the Companys most recent annual
report to shareholders, which may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or achievements expressed
or implied by such forward-looking statements. A number of factors could cause actual results to
differ materially from those in the forward-looking statements, including, but not limited to,
general economic, market and business conditions, fluctuations in foreign exchanges, the
negotiations and closing of the transaction and bringing the Egyptian nitrogen facility into
production as planned. Agrium disclaims any intention or obligation to update or revise any
forward-looking information as a result of new information or future events.
FOR FURTHER INFORMATION:
Richard Downey, Senior Director, Investor Relations