Key Takeaways
- Adecoagro will acquire YPF’s remaining 50% stake in Profertil, becoming its controlling shareholder.
- The transaction gives Adecoagro a 90% equity stake in Profertil, with ACA retaining 10%.
- Total consideration paid by Adecoagro for its Profertil stake will reach approximately US$1.1 billion.
- The acquisition was partially financed through a US$300 million equity issuance anchored by Tether Investments.
- Profertil is the largest producer of granular urea in South America and a strategic asset for regional fertilizer supply.
Adecoagro Secures Controlling Stake in Profertil
Adecoagro S.A. (NYSE: AGRO), a sustainable production company operating across South America, announced that YPF S.A. has accepted its offer to acquire the remaining 50% stake in Profertil S.A., the region’s largest producer of granular urea.
The announcement follows Adecoagro’s recent closing of Nutrien’s 50% stake in Profertil on December 10, which was structured through an 80%–20% partnership with Asociación de Cooperativas Argentinas (ACA). With YPF’s acceptance of the offer, Adecoagro will hold 90% of Profertil’s equity, while ACA will retain the remaining 10%.
Upon completion of both transactions, Adecoagro will have paid approximately US$1.1 billion for its ownership position in Profertil.
Financing Structure and Equity Issuance
Adecoagro stated that the acquisition was financed through a combination of existing cash balances, a long-term credit facility, and proceeds from a recently completed US$300 million equity offering. The company issued 41,379,311 common shares at US$7.25 per share.
The equity raise attracted demand from global investors and was anchored by a US$220 million investment from Tether Investments S.A. de C.V., Adecoagro’s controlling shareholder. Additional participation included approximately US$26 million from members of management and friends and family.
Adecoagro Positions Profertil as Strategic Growth Asset
Mariano Bosch, Co-Founder and Chief Executive Officer of Adecoagro, described the transaction as a major strategic step for the company.
“This acquisition is a transformative milestone for Adecoagro,” Bosch said. “It greatly expands our scale, enhances our production capabilities, and further diversifies our portfolio, strengthening the Company’s ability to perform across different market cycles.”
Bosch highlighted Profertil’s position as a low-cost urea producer benefiting from Argentina’s Vaca Muerta natural gas resources, noting its role in supporting long-term competitiveness and fertilizer supply in the region.
He added that following the transaction, Adecoagro expects to generate more than US$2 billion in annual sales, nearly double its adjusted EBITDA, and significantly increase its net results, while maintaining financial discipline.
Investor Support and Strategic Rationale
Commenting on the equity issuance, Bosch noted that the transaction marked Adecoagro’s first successful access to public equity markets since its 2011 IPO.
“We deeply appreciate the trust shown by both new and existing investors,” he said, citing the participation of Tether and company management as anchor investors.
Juan Sartori, Head of Special Projects at Tether and Executive Chairman of Adecoagro’s Board, said the investment reflects long-term confidence in the company’s strategy and leadership.
“By integrating this asset, Adecoagro will reinforce its position as a key player in the region and increase its exposure to sustainable, real-economy businesses,” Sartori said.
