EuroChem Group AG recently announced the acquisition of a controlling interest (50%+1 share) in Fertilizantes Tocantins, a leading fertilizer distribution company in Brazil. The deal is subject to regulatory approval and expected to be concluded by the end of August 2016.
The acquisition is in line with EuroChem’s strategy to strengthen its presence in the fast growing Latin American fertilizer market. With Fertilizantes Tocantins’ market expertise, blending facilities and established network of 2,000 customers, this acquisition will strengthen EuroChem’s capabilities in the region.
Founded in 2003, Fertilizantes Tocantins is strategically located in Brazil’s emerging fertile farming regions in the North, Northeast and Mid-West. It has delivered double digit sales growth for seven consecutive years, with fertilizer sales reaching 740,000 tonnes in 2015.
Under the terms of the acquisition, Mr José Eduardo Motta, Fertilizantes Tocantins’ owner, will retain a significant interest in the venture whilst continuing to serve as CEO overseeing operational management and the strategic growth of the business. Financial details of the deal remain undisclosed.
Dmitry Strezhnev, EuroChem’s CEO, commented: “The acquisition of Fertilizantes Tocantins creates compelling growth opportunities for EuroChem in Brazil, allowing us to significantly expand our offering of high-quality fertilizers to local farmers. With José Eduardo continuing as CEO, we are well placed to tap into Brazil’s fast-growing fertilizer market.”
José Eduardo Motta, Fertilizantes Tocantins’ CEO, added: “With this backing from EuroChem, such an established global fertilizer producer, we are confident in our ability to significantly increase our market share in Brazil.”