#None #YPF #Adecoagro #Profertil

Adecoagro's Strategic Acquisition of Profertil

In a major move within the South American agricultural sector, Adecoagro S.A. has finalized the acquisition of Profertil S.A., significantly enhancing its production capabilities and market presence. Profertil, recognized as the largest producer of granular urea in the region, will now operate under the control of Adecoagro, following a successful transaction that positions the company as a key player in agricultural sustainability.

On December 15, 2025, Adecoagro announced that YPF S.A. has agreed to sell its remaining 50% stake in Profertil. This acquisition follows Adecoagro's earlier purchase of Nutrien's 50% stake in Profertil on December 10th, consolidating the company’s position by giving it a robust 90% ownership of Profertil. The financial outlay for this acquisition reached approximately $1.1 billion, highlighting Adecoagro's commitment to expanding its operational scale and efficiency.

This strategic acquisition will transform Adecoagro into a powerhouse in the agricultural sector, projecting over $2 billion in annual sales and a considerable increase in adjusted EBITDA. The integration of Profertil not only diversifies Adecoagro's product offerings but also enhances its ability to navigate varying market conditions effectively. Mariano Bosch, the CEO of Adecoagro, articulated the significance of this deal by stating that it will further position the company to leverage the vast potential of Vaca Muerta, an important source of competitive advantage for Argentina.

To finance this substantial acquisition, Adecoagro utilized a mix of existing cash reserves, long-term credit facilities, and a recent equity issuance that raised $300 million. This public offering, which included the sale of over 41 million common shares at $7.25 each, received robust backing from global investors, ensuring a solid financial foundation moving forward. Tether Investments S.A. played a pivotal role in this equity issuance by committing $220 million, reinforcing the investor confidence in Adecoagro's strategic vision and operational capabilities.

Profertil is crucial for optimizing crop yields sustainably, producing an annual capacity of 1,320,000 tons of granulated urea, essential for enhancing soil nutrient quality in various agricultural settings. The production facility, strategically located in Ingeniero White, Buenos Aires, also specializes in custom fertilizer mixtures tailored for diverse crops. This focus on tailored solutions underlines Profertil's commitment to delivering optimal nutrition for crops in varying geographical regions.

Furthermore, Adecoagro's acquisition aims to stimulate significant growth while adhering to financial discipline. By maintaining prudent levels of debt and enhancing shareholder value, Adecoagro's leadership team is confident in the company's trajectory in the Latin American agricultural landscape. Bosch emphasized that this acquisition not only consolidates their market position but also portrays Adecoagro as a leader committed to sustainable agricultural practices.

As a company with 210.4 thousand hectares of farmland across Argentina, Brazil, and Uruguay, Adecoagro aims to generate over 3.1 million tons of agricultural products annually, alongside producing more than 1 million MWh of renewable energy. The acquisition of Profertil demonstrates Adecoagro’s ability to adapt to market demands and capitalize on growth opportunities while balancing environmental responsibilities and profitability.

In conclusion, Adecoagro’s acquisition of Profertil signifies a transformative chapter for both companies, setting the stage for growth that aligns with sustainability and innovation in the agribusiness sector. Through strategic investments and expansions, Adecoagro is on its way to solidifying its stance as an influential player in the global agricultural market.