Agricultural products specialist Agrium Inc has announced that it has bought a 70-per cent majority stake in Common Market Fertilizers SA, or CMF, one of Western Europe's fertilizer distribution companies. The Calgary firm closed the $50million plus working-capital purchase on 8 July.

Agrium noted that CMF has a large base of 1,500 customers, including retailers and cooperatives, across Europe and has annual sales revenues of about $600 million and crop nutrient sales volumes of 2 million to 2.5 million tonnes.

It operates through subsidiaries in France, Germany, Belgium, the UK, Italy and Bulgaria, and it also markets products in Spain, the Netherlands, Ireland, Greece, Denmark and South America. CMF owns and leases over 300 thousand tonnes of dry and liquid storage at both port and inland sites across much of Europe.

The deal "is key to expanding our international sourcing and distribution business," according to Agrium CEO Mike Wilson.

Agrium, which globally produces and markets the three primary plant nutrients - nitrogen, phosphate and potash - and is North America's third largest fertilizer maker, is looking forward to making long-term business deals overseas, a company executive explained.

"As you look at the global landscape, there are obviously some markets that are fairly large that we don't have a large presence in, and we feel that distribution is one of the best ways to enter new markets," said Andrew Mittag, Agrium's senior vice-president of corporate development and strategy.

"In this particular case, we were given the opportunity to make this investment in a company that's very well run, has a long legacy of success and has certainly a strong and stable platform to grow from in Europe."

CMF, which has its head office in Brussels, has 60 employees across Europe. Its managing director Oscar Geyer will remain in the same position and will continue to hold an equity stake.

Agrium Inc. is a major retail supplier of agricultural products and services in North and South America, a leading global wholesale producer and marketer of all three major agricultural nutrients and a leading supplier of specialty fertilizers in North America through its Advanced Technologies business unit.

Agrium was founded as Cominco Fertilizers, Ltd. in 1931 and changed its name to Agrium, Inc. in 1995. Agrium is headquartered in Calgary, Canada. Agrium US Inc., a subsidiary company, is based in Denver, Colorado and is the location of Agrium's retail head office.