OREANDA-NEWS. August 08, 2012. Agrium Inc. (TSX and NYSE: AGU) announced that it has reached an agreement for Glencore International plc (“Glencore”) to sell Viterra’s minority position in a nitrogen facility located in Medicine Hat, Alberta to CF Industries Holdings, Inc. (“CF Industries”) for USD915-millionб reported the press-centre of Agrium.

The resulting net purchase price for the portion related to the retail business is estimated to be about USD 175-million plus approximately USD 400-million in retail working capital. This purchase price is net of operating cash flow generated by the Agri-Products business from March 31, 2012 until close of the transaction, which is expected in the fourth quarter of 2012.

In 2011, Viterra’s total Agri-Products business generated USD 2.4-billion in revenue and USD 244-million in EBITDA according to Viterra’s annual report. We estimate that approximately USD 100-million of EBITDA represents the retail portion of the 2011 earnings, excluding any synergies to be obtained by Agrium in the future.

On March 20, 2012, Agrium entered into a definitive agreement with Glencore to acquire the majority of Viterra’s Agri-Products business (including its minority interest in the nitrogen facility) upon completion of Glencore’s announced acquisition of Viterra. Glencore’s sale of the nitrogen facility to CF Industries will take place upon the closing of this acquisition and after the necessary approvals have been granted by Canadian regulators.

“Following today’s announcement, Agrium’s purchase price for the majority of Viterra’s agri-retail business is even more attractive. These assets represent an excellent addition to our Retail business at a compelling valuation, and we believe that this transaction clearly demonstrates our ability to create value for our shareholders as a result of our strong position across the agricultural value chain,” said Mike Wilson, Agrium President and CEO.

“Crop input demand in Western Canada has been very strong this year as a result of the attractive crop price environment and favourable growing conditions, and we are excited about the opportunity to provide even greater value for growers in this key agricultural market. We look forward to Glencore closing on the Viterra acquisition in the near future, and are anticipating that Agrium’s acquisition of the retail business will likely occur sometime during the fourth quarter. As previously announced, we will continue to focus on pursuing nitrogen growth opportunities in North America,” added Mr. Wilson.