Yara Acquires Stake in Agrico Canada

(2008-05-28) Yara International has purchased 25 percent of Agrico Canada Ltd, a leading supplier of fertilizer products and services in Canada.

Yara’s partnership in Agrico Canada marks a logical progression for two companies that share a commitment to serving the needs of Canadian agriculture.

"We have been providing Canada with top quality fertilizer products for over 75 years", says Robert Whitelaw, President of Agrico Canada. "We are pleased to have found a partner that shares our focus on value-added service based on tradition and customer care. We look forward to working together with a truly global player in our industry."

"This investment provides the basis for a closer cooperation from an operational standpoint", says Pete Valesares, President of Yara North America. "The cooperation between Yara and Agrico creates an improved fertilizer import position, and complementary flagship terminals at Hamilton (Agrico) and Contrecoeur (Yara) will mean increased efficiency."

The fertilizer market in Canada is about 5.3 million metric tons a year. Urea is one of the most important products. Ontario is an important and very productive agricultural area with a wide variety of crops such as corn, soybeans, cereals, vegetable and hay pasture. Ontario's fertilizer market is approximately 750,000 metric tons.

Established in 1931 as Agricultural Chemicals Ltd., the name Agrico stems from their original brand of premium grade fertilizer. After expanding in the 1970s on the strength of joint ventures and a growing network of independent retailers, the company changed its name to Agrico Canada Ltd./Ltée in 1982. In 1985, a group of Canadian investors led by Robert Whitelaw bought 85 percent of the company. A purchase of the final 15 percent of shares in 1994 made Agrico a wholly-owned, privately held Canadian company.

Now Agrico markets and distributes plant nutrients to independent dealers across Canada, and markets to growers through wholly and jointly owned farm centers. The company offers JV partners and dealers a range of extra services, from financing to training.

Agrico Canada owns five storage terminals and leases a further five terminals for a total storage capacity of 235,000 tons. Their extensive distribution network has the ability to handle products from diverse sources and the capacity to receive shipments via rail, freight and offshore vessels.

Agrico has 42 full-time employees and had annual revenues of approximately CAD 160 million in 2007.