Agrium to Divest Turf and Ornamental Business

Date:05-20-2014

Fertilizer maker Agrium Inc. ( AGU ) has recently inked a deal with Koch Agronomic Services, LLC, an affiliate of Koch Fertilizer, LLC, to divest its turf and ornamental business. The deal is valued at around $85 million including working capital.

The turf and ornamental business, which is a part of Agrium's former Agrium Advanced Technologies (AAT) group, offers controlled release fertilizers for horticulture, professional turf grass and consumer lawn and garden markets. As per Agrium, the divestment is part of a strategic review of the business completed last year with regards to the discontinued operations of the AAT unit. The transaction is expected to close in the second quarter of 2014 subject to customary closing conditions.

Agrium will remain focussed on optimising its portfolio and product lines to generate additional value for their shareholders.