Adecoagro S.A. closed its purchase of Profertil on December 15 2025, acquiring a 90 % stake for approximately US$1.1 billion. The deal was financed through a mix of existing cash, a long‑term credit facility, and a recently completed equity issuance that raised US$300 million by selling 41,379,311 shares at US$7.25 each. The remaining 10 % of Profertil remains owned by the Asociación de Cooperativas Argentinas.
The acquisition extends Adecoagro’s footprint into the fertilizer sector, adding a fully dollar‑denominated business that generated an average annual EBITDA of US$390 million over 2020‑2024 and supplies roughly 60 % of Argentina’s urea consumption. Profertil’s production plant in Ingeniero White benefits from competitively priced natural gas from the Vaca Muerta shale formation, giving the company a low‑cost production advantage that Adecoagro can leverage to strengthen its supply chain and pricing power.
Management projects that the new unit will more than double Adecoagro’s sales and nearly double its adjusted EBITDA, while maintaining disciplined leverage. The transaction raises the company’s net debt to LTM adjusted EBITDA to 2.8×, reflecting the additional debt taken on to fund the acquisition and the equity dilution from the share issuance. Despite the higher leverage, Adecoagro’s management believes the long‑term cash‑flow benefits and strategic diversification outweigh the short‑term balance‑sheet impact.
Mariano Bosch, Adecoagro’s Co‑Founder and CEO, described the deal as a “transformative milestone” that expands the company’s scale, enhances production capabilities, and deepens its foothold in a high‑margin, dollar‑denominated market. He highlighted Profertil’s low‑cost urea production and the opportunity to harness Vaca Muerta gas to sustain competitive pricing and margin expansion.
The transaction values Profertil at an EBITDA multiple of roughly 2.8× (US$1.1 billion divided by US$390 million), a figure that aligns with the valuation of comparable fertilizer producers in the region. The acquisition not only boosts Adecoagro’s top‑line but also positions the company as a diversified industrial platform, reducing exposure to commodity price swings and strengthening its long‑term growth prospects.
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