Agrium to buy Pursell Technologies

Calgary, Alberta, and Sylacauga, Ala. – Pursell Technologies agreed to sell its business assets to Agrium for $74.5 million.

Agrium is a retailer, marketer and producer of crop inputs, specialty fertilizers and industrial products.

The transaction is subject to regulatory approval and is expected to close no earlier than late July. The acquisition is expected to increase Agrium’s sales and earnings in the growing and specialty fertilizer business.

Agrium has pioneered the development of controlled-release fertilizer products for use in broad acre crop applications, and this transaction is expected to further support that effort.

PTI is best known for pioneering coating technologies with brands such as Polyon polymer-coated fertilizers, TriKote polymer/sulfur coated fertilizers and Precise controlled-release pesticide technology.

The combination of complementary Pursell and Agrium technologies and products is expected to reduce costs, expand output and enhance the quality and availability of Agrium’s polymer-coated controlled release fertilizer, ESN.

“With the addition of Pursell, we enhance our position as a global leader in environmentally friendly, controlled-release fertilizers and add another stable earnings stream to our portfolio of businesses and products,” says Mike Wilson, president and c.e.o. of Agrium. “The strategic combination of Agrium and PTI should further advance our polymer-coating technological capabilities. We are also excited about the potential to expand our offering of complementary specialty products to our customers and to add the experienced marketing and technology team of Pursell.”

“This acquisition is a marriage made in heaven,” says David Pursell, c.e.o. of PTI. “It’s strategic for Pursell Technologies and Agrium. Agrium offers PTI financial strength and global positioning, and we provide Agrium with significant market knowledge, established customer relationships and industry expertise. As part of the Agrium team, we will further test and strengthen our controlled-release technologies by combining our research and development efforts.

“I didn’t want to throw our employees to the wolves, so we met with the Agrium folks and found out they are highly ethical and run their business like us and take risks,” Pursell adds. “What more could you ask for?”

Agrium intends to combine the sales and earnings from the PTI acquisition with those of its other specialty fertilizer products, including those from recently purchased Nu-Gro, into a new business segment.

“Agrium is doing some bold things in the ag marketplace with controlled release,” Pursell says. “We’ll grow the business significantly over the next several years.”

The transaction is expected to provide a stronger, more comprehensive product offering – a strategic move aimed at serving customers better by offering them a broader selection of complementary controlled release solutions.

Agrium also will seek to secure global customers for PTI’s flagship product Polyon.

The newly established FarmLinks LLC, a spin off of PTI, isn’t included in the sale, however, Agrium has agreed to provide significant support to this education program.

“We look forward to continuing to build on PTI’s strong customer relationships and its history of technological innovation and success,” Wilson says. “We intend to integrate PTI into Agrium in a way that is seamless to customers.”

Regional headquarters will remain at Pursell Farms in Sylacauga, Ala.

Pursell says the company has always had potential buyers ever since he left Auburn University in the 1980s, but this was different.

“Our technology and theirs are very similar,” he says. "We can get our technical people together and improve one or the other technologies or both. We have manufacturing plants in the Southeastern United States and have excess capacity. Agrium has room in the Pacific Northwest, so one day we might want to manufacture Polyon there.

“I have never failed at anything and don’t intend to now,” Pursell adds.

For more information about both companies, visit www.agrium.com and www.pursell.com.