Adecoagro Announces $600 Million Deal to Acquire 50% of Profertil, South America’s Largest Urea Producer

Company Acquires 50% of Profertil, Leader in Urea in South America, in a Transaction That Could Redesign the Sector.

Adecoagro, a leading sustainable production company, announced an agreement to purchase 50% of Profertil. Profertil is based in Argentina and is the largest producer of urea in South America. The acquisition will be of the stake owned by Nutrien. The other 50% of the company remains owned by YPF, the largest producer of oil and gas in Argentina.

A Strategic Move in the Fertilizer Market

Adecoagro will carry out the acquisition through a partnership. The company will hold 80% of the business, while the Asociación de Cooperativas Argentinas (ACA) will have the remaining 20%. ACA is one of the main operators in grain trading and agricultural input distribution in Argentina. Adecoagro, in turn, owns 210.4 thousand hectares of land and various industrial facilities in Argentina, Brazil, and Uruguay.

Details of the Partnership and the Million-Dollar Acquisition

The purchase price for Nutrien’s stake in Profertil is approximately US$ 600 million. However, Profertil’s shareholders’ agreement grants YPF a right of first refusal. YPF has 90 days to decide if it wants to buy Nutrien’s share on the same terms and conditions. Profertil generated an average annual EBITDA of about US$ 390 million between 2020 and 2024.

Profertil: Efficiency and Leadership in Urea Production

Profertil is recognized as one of the most cost-efficient urea and ammonia producers in the world. Its annual production capacity is approximately 1.3 million tons of urea and 790 thousand tons of ammonia. The company supplies about 60% of urea consumption in Argentina. Its industrial complex in Bahía Blanca has access to natural gas and electricity at competitive prices.

Next Steps and Adecoagro’s Vision for the Future

Mariano Bosch, co-founder and CEO of Adecoagro, described the transaction as a “strategic opportunity“. “Profertil is one of the best companies in Argentina (…) We believe this acquisition is an excellent fit for our agro-industrial platform, allowing us to continue diversifying our operations”, he stated.

The completion of the deal is subject to customary closing conditions. The expectation is that the transaction will be finalized before the end of 2025. Rabobank acts as the exclusive financial advisor to Adecoagro and ACA in this operation.

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