Adecoagro Completes The Acquisition of Profertil
Adecoagro (NYSE: AGRO) completed the purchase of YPF's 50% stake in Profertil, becoming the controlling shareholder with 90% equity while Asociación de Cooperativas Argentinas retains 10%.
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Rhea-AI Summary
Adecoagro (NYSE: AGRO) completed the purchase of YPF's 50% stake in Profertil, becoming the controlling shareholder with 90% equity while Asociación de Cooperativas Argentinas retains 10%.
The company paid approximately US$1.1 billion for the stake and funded the deal using existing cash, a long‑term credit facility and proceeds from a recent US$300 million equity issuance (41,379,311 shares at US$7.25). The equity raise was anchored by a US$220 million commitment from controlling shareholder Tether Investments and US$26 million from management and friends & family.
Management expects the transaction to expand scale, increase production capacity, and result in a company generating over $2 billion in sales and nearly doubling Adjusted EBITDA.
Positive
- 90% ownership of Profertil after acquisition
- Acquisition price of ~US$1.1 billion
- US$300 million equity raise (41,379,311 shares at US$7.25)
- US$220 million anchor commitment from controlling shareholder
- Expected pro forma sales of over $2 billion and nearly doubled Adjusted EBITDA
Negative
- Deal funded with long‑term credit facility and cash, increasing leverage
- Equity issuance of 41,379,311 shares causes shareholder dilution
Details
News Market Reaction – AGRO
On Dec 15, the day this news came out, AGRO closed 6.45% above the previous close.
Data tracked by StockTitan Argus for the Dec 15 session.
Key Figures
- Profertil stake cost
- US$1.1 billion
- Total paid by Adecoagro for its equity interest in Profertil
- Equity issuance size
- US$300 million
- Recent common share sale to help finance Profertil acquisition
- Shares issued
- 41,379,311 shares
- New common shares sold at US$7.25 per share
- Issue price
- US$7.25 per share
- Pricing of recent common share offering
- Anchor investment
- US$220 million
- Commitment from controlling shareholder Tether in equity offering
- Management & F&F
- US$26 million
- Equity offering participation by management and friends & family
- Profertil ownership
- 90%
- Adecoagro’s equity stake in Profertil post-transaction
- Target sales scale
- Over $2 billion
- Projected company sales after integrating Profertil
Historical Context
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Announced $300M common share offering with major shareholder interest.
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Filed registration to offer up to $500M in securities over time.
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Submitted binding US$600M offer to acquire YPF’s remaining 50% of Profertil.
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Reported 3Q25 Adjusted EBITDA of $115.1M and record 4.9M tons crushing.
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Board approved second cash dividend tranche, annual payout totals $35M.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
granular urea medical
equity issuance financial
adjusted EBITDA financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
After successfully closing the acquisition of Nutrien's
As a result, Adecoagro will become the controlling shareholder of Profertil with
In addition to the use of existing cash balances and a long term credit facility, a portion of the acquisition financing was secured through Adecoagro's recently completed
Mariano Bosch, Co-Founder and Chief Executive Officer of Adecoagro, stated: "This acquisition is a transformative milestone for Adecoagro. 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. Profertil is uniquely positioned as a low-cost urea producer, leveraging the vast potential of Vaca Muerta to boost
He further added: "With this transaction, we will become a company generating over
Regarding the equity sale, Mr. Bosch stated: "For the first time since our IPO in 2011, we are successfully accessing the public market. We deeply appreciate the trust shown by both new and existing investors—especially Tether and management, who served as anchor investors in our equity offering. Their support and commitment strengthen confidence in our strategy, highlight the importance of remaining a publicly listed company, and underscore the value this transaction will deliver to all stakeholders."
Juan Sartori, Head of Special Projects of Tether and Executive Chairman of Adecoagro's Board of Directors, added: "As we have said since day one, we are here to support Adecoagro. We have consistently expressed our confidence in the Company, in its management team, and in its strategic vision. Today, that commitment is reflected in a tangible investment of
About Profertil:
Profertil is a company devoted to the production of the fertilizers needed to optimize crop yields in a sustainable manner. Profertil has its production plant located in the port of Ingeniero White, Province of
About Adecoagro:
Adecoagro is a leading sustainable production company in
For questions, please contact:
Adecoagro
Victoria Cabello - IR Officer
Email: ir@adecoagro.com
View original content:https://www.prnewswire.com/news-releases/adecoagro-completes-the-acquisition-of-profertil-302642152.html
SOURCE Adecoagro S.A.
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