Nutrien to sell 50% Profertil stake for ~$600M (U.S.)

Executive Summary

• Nutrien Ltd. has entered into a definitive agreement to sell its 50 % equity stake in Argentina‑based nitrogen producer Profertil S.A. for an estimated pretax consideration of ≈ US$600 million.
• Proceeds are earmarked for targeted growth investments, share repurchases and debt reduction, aligning with Nutrien’s long‑term capital allocation strategy.
• The transaction is subject to customary closing conditions and is expected to close by the end of 2025; the remaining 50 % shareholder retains a 90‑day right of first refusal on identical terms.

Key Details

• Seller: Nutrien Ltd. (President & CEO: Ken Seitz)
• Buyer(s): Adecoagro SA and Asociación de Cooperativas Argentinas Coop Ltda., acting jointly.
• Equity Position Sold: 50 % of Profertil S.A. (Argentina).
• Purchase Price: Approximately US$600 million on a pretax basis.
• Use of Proceeds: Targeted growth investments, share repurchases, and debt reduction to enhance earnings quality and free‑cash‑flow generation.
• Closing Timeline: Expected completion before the end of 2025, subject to customary closing conditions.
• Right of First Refusal: The remaining 50 % equity owner has a 90‑day right to match the terms and purchase Nutrien’s stake.
• Financial Adviser: BofA Securities (acting for Nutrien).
• Historical Earnings Contribution: Profertil earnings attributable to Nutrien’s Nitrogen segment were approximately US$60 million over the prior four quarters.

Notable Quotes

“The agreement to sell our equity stake in Profertil advances our strategy to focus on assets and geographies that are core to our long‑term vision,” – Ken Seitz, President & CEO, Nutrien.
“We intend to allocate the sale proceeds to initiatives consistent with our capital allocation priorities, including targeted growth investments, share repurchases and debt reduction.”