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Agrium buying Australian fertilizer business Macrofertil from Louis Dreyfus Co.

Last Updated Dec 12, 2017 at 3:40 pm EDT

The Agrium logo is shown at the company's annual meeting in Calgary, Tuesday, May 2, 2017. THE CANADIAN PRESS/Jeff McIntosh

CALGARY – Agrium Inc. has signed a deal to buy Macrofertil, a fertilizer distribution business in Australia, from Louis Dreyfus Co.

Financial terms of the deal were not immediately available.

The company (TSX:AGU) says the Macrofertil business includes six fertilizer storage and distribution assets with coating and blending capabilities, and about US$120 million in annual sales.

The deal is subject to customary closing conditions and is expected to close in the first quarter of next year.

Agrium’s existing Landmark Operations Ltd. retail business in Australia offers crop inputs, agricultural merchandise as well as agronomic advice and services for wool and livestock sales, finance, insurance and real estate.

Agrium CEO Chuck Magro says the deal will complement its retail footprint in Australia and allow it to improve its product and service offerings for new and existing Landmark customers.