Mosaic buys Archer Daniels Midland fertilizer units in Brazil, Paraguay

Archer Daniels Midland today announced that it has completed the sale of its South American fertilizer business to Mosaic.

“The completion of this sale is an important part of our ongoing portfolio management,” said ADM chief executive Patricia A. Woertz. 

“By selling our blending assets in Brazil and Paraguay, we are improving our returns and creating shareholder value," she added. "At the same time, we look forward to continuing to partner with growers in that important region through our grain origination and fertilizer distribution network.”

The transaction consists primarily of five ADM-owned blending facilities in Brazil and Paraguay. Mosaic paid $350 million for the assets; that purchase price included $150 million in working capital. 

As part of the transaction, ADM will purchase fertilizer from Mosaic and will continue to supply certain fertilizer customers in Brazil and Paraguay.