Agrium Inc. (AGU) said that it has inked a deal to divest its Niota and Meredosia storage and distribution facilities to subsidiaries of Trammo, Inc. for about $50 million. The deal, which is subject to customary closing conditions, final purchase price adjustments and regulatory clearances, is expected to close by the first quarter of 2015.
The company stated that the sale is connected with the discontinuation of its North American purchase for resale business. Agrium has taken this decision to review and simplify its portfolio and focus on its core business, thus driving shareholder value.
Agrium posted its third-quarter 2014 results on Nov 3, 2014. The company’s profit from continuing operations increased 13.8% year over year to $91 million. However, its adjusted earnings from continuing operations came in at 43 cents per share, missing the Zacks Consensus Estimate of 50 cents. Revenues went up roughly 4.4% year over year to $2,920 million, but missed the Zacks Consensus Estimate.
Agrium, based in Alberta, Canada, is a major retailer of agricultural products and services in North and South America. The company is the third largest potash producer in North America. It is also a leading global wholesale producer and marketer of all three major agricultural macronutrients − nitrogen, potash, and phosphate − besides being a premier supplier of micronutrients and specialty fertilizers in the U.S. and Canada.
Agrium, which is among the major fertilizer makers along with Potash Corp. of Saskatchewan, Inc. (POT), The Mosaic Company (MOS) and CF Industries Holdings, Inc. (CF), follows a strategy to grow along the value chain through a combination of acquisitions and organic development. It stands to gain from overall strong fundamentals for the agriculture and crop input market.
Agrium is a Zacks Rank #3 (Hold) stock.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment