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Canadian company to buy Colorado agriculture business for $2.65
GREELEY, Colo. (AP)--Agrium Inc., a Canadian-based international retailer of agricultural supplies and services, said Dec. 3 it would buy UAP Holding Corp., of Greeley for $2.65 billion in cash. UAP Holding is the parent of UAP Inc., a distributor of agricultural and non-crop products in the U.S. and Canada. The acquisition would form the largest retailer of crop inputs and services in North America, Agrium said in a written statement. Under the agreement, Agrium would pay $39 a share for UAP Holdings, a 27 percent premium over the price for 20 trading days ended Nov. 30. The deal includes an estimated $487 million in assumed debt. Agrium President and Chief Executive Officer Mike Wilson said UAP "is an excellent strategic fit" for his company. "The acquisition will significantly expand our geographic base and our product diversity, and will offer an opportunity to leverage strengths of both companies," he said. UAP President and CEO Kenny Cordell called the transaction "an extraordinary opportunity for our shareholders, customers, and employees." He said the combine company would be able to offer improved and expanded products, services and technologies to a broader range of customers. UAP markets agricultural chemicals, fertilizer and seed to farmers, commercial growers and regional dealers. It also provides crop management, biotechnology advice, custom fertilizer blending, seed treatment, inventory management, custom crop applications and other services. It has 370 distribution and storage facilities and three formulation plants in the United States and Canada. Agrium, based in Calgary, Alberta, retails agricultural products and services in North and South America and produces and markets fertilizers and industrial products. UAP shares were up 8.39 to $38.30 Dec. 3 in afternoon trading. Agrium shares were up $3.84 to 61.68. Date: 12/26/07
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