CALGARY — Fertilizer giant Agrium Inc. (TSX:AGU) is launching its retail presence in Canada with 33 outlets in Alberta and Saskatchewan — including eight in Central Alberta.
The Calgary-based company said Monday the outlets will operate under the Crop Production Services brand, which has had a presence in the United States for 17 years.
“The purchase of these retail assets marks our entrance into the Canadian retail market and will enhance our ability to serve all our customers in these regions,” said Mike Wilson, Agrium’s chief executive officer, in a statement.
“These acquisitions are an important part of our retail growth strategy and are expected to be accretive to earnings in 2010.”
Retailers affected include Parkland Agri Services in Penhold, Delburne, Stettler and Torrrington; and Ross Agri in Castor, Ponoka, Rimbey and Trochu.
Agrium has kept its hands out of the Canadian retail market in the past, though it did own storage terminals that it leased to another fertilizer retailer.
The company said Monday it has bought the remaining crop nutrient business assets that it didn’t previously own from five Engro franchise dealers and an existing joint venture.
The outlets — 27 of which are in Alberta and six of which are in Saskatchewan — have annual revenues of about US$162 million, the company said.
Agrium already has a major retail presence in the United States, which it has bulked up substantially over the past four years.