Key Takeaways
- Nutrien completed the sale of its 50% equity position in Profertil S.A. to Adecoagro S.A. and Asociacion de Cooperativas Argentinas Coop Ltda.
- The transaction generated approximately US$600 million in pre-tax proceeds.
- The company plans to use proceeds for growth investments, share repurchases, and debt reduction.
- With this divestiture, Nutrien has generated roughly US$900 million in gross proceeds from asset sales since late 2024.
- The sale aligns with the company’s strategy to simplify its portfolio and enhance earnings quality.
Nutrien Finalizes Profertil Divestiture
Nutrien Moves Forward With Portfolio Simplification Strategy
Nutrien Ltd. announced the completion of the sale of its 50% equity stake in Argentina-based nitrogen producer Profertil S.A. The buyers, Adecoagro S.A. and Asociacion de Cooperativas Argentinas Coop Ltda, acquired the stake through a joint transaction valued at approximately US$600 million on a pre-tax basis.
“Closing the sale of our equity stake in Profertil demonstrates continued progress towards simplifying our portfolio, enhancing earnings quality, and improving cash conversion,” said Ken Seitz, Nutrien’s President and CEO.
Nutrien Allocation Plan for Sale Proceeds
Capital Deployment Focused on Long-Term Free Cash Flow Growth
Nutrien stated that proceeds from the transaction will support its capital allocation priorities. These include targeted growth investments, share repurchases, and debt reduction—key components of its long-term plan to grow free cash flow per share.
With the completion of this sale, Nutrien has now generated approximately US$900 million in gross divestiture proceeds since the fourth quarter of 2024.
Outlook Following the Sale
Company Continues Emphasis on Earnings Quality and Cash Conversion
The Profertil divestiture is part of Nutrien’s broader strategy to streamline its asset base and concentrate on business lines that strengthen long-term cash generation. The company has indicated that the enhanced flexibility resulting from recent asset sales will support both operational discipline and future investment opportunities.
Nutrien Ltd.
Nutrien Ltd. is a global provider of crop inputs and services, with a large-scale network of production, distribution, and ag retail facilities. The company serves agricultural, industrial, and feed customers through the supply of potash, nitrogen, and phosphate products, totaling approximately 27 million tonnes annually.
Nutrien's retail network supports over 600,000 customer accounts worldwide. Its operations span the agricultural value chain, with a focus on improving on-farm productivity. The company emphasizes long-term value creation through investments, stakeholder engagement, and farmer-focused services.
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