Mosaic buying ADM fertilizer operations in S. America
Mosaic Co. has agreed to buy Archer Daniels Midland’s fertilizer distribution business in Brazil and Paraguay, as it continues to expand its holdings in the growing South American region.
Plymouth-based Mosaic said on April 15 that it will pay $350 million for operations including four blending and warehousing facilities in Brazil, one in Paraguay and other warehouse and logistics services, plus $150 million in working capital.
“This acquisition provides a critical distribution platform in one of the world’s fastest-growing agricultural regions,” Mosaic CEO Jim Prokopanko said in a statement.
“It compliments our other recent strategic initiatives, including our joint venture in Saudi Arabia, our recent acquisition of CF Industries’ phosphate business and our ongoing potash expansion program,” he added.
The deal is subject to regulatory approval.
ADM also announced on April 15 that it intended to sell its global cocoa and chocolate business.
Illinois-based ADM also announced that it has acquired the remaining 20 percent stake in Toepfer International, a grain and commodities trading business that has its main U.S. office in Minneapolis. It had owned 80 percent of Toepfer since 2002.