Agrium to Buy Louis Dreyfus' Fertilizer Unit in Australia

Agrium Inc.’s AGU Australian ag-retail business, Landmark Operations, Ltd. has entered into an agreement with Louis Dreyfus Company for the acquisition of Macrofertil, a fertilizer distribution business in Australia.

The business, with roughly $120 million in annual sales, includes six fertilizer storage and distribution assets with coating and blending capabilities. Its annual sales exceed 300,000 tons.

The deal subjected to customary closing conditions is expected to be completed in the first quarter of 2018.

Being a leading agribusiness company in Australia, Landmark provides crop inputs, agricultural merchandise as well as agronomic advice and services for wool and livestock sales, finance, insurance and real estate.

Agrium has underperformed the industry it belongs to over the last three months. The company’s shares have moved up around 7.7% over this period, compared with roughly 5.8% gain recorded by its industry.

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Agrium Inc. Price and Consensus | Agrium Inc. Quote

Zacks Rank & Stocks to Consider

Agrium currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Kronos Worldwide Inc. KRO, Koppers Holding Inc. KOP and Westlake Chemical Corporation WLK, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kronos Worldwide has expected long-term earnings growth of 5%. Its shares have gained 115.8% year to date.

Koppers has expected long-term earnings growth of 18%. Its shares have rallied 20.4% year to date.

Westlake Chemical has expected long-term earnings growth of 10.6%. Its shares have moved up 80.2% year to date.

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