Adecoagro S.A. Acquires Profertil: A Strategic Step for Sustainable Agriculture Growth

Adecoagro's Strategic Move to Acquire Profertil: A Game Changer for Sustainable Agriculture

On December 1, 2025, Adecoagro S.A., a significant player in sustainable production across South America, announces a pivotal move to acquire YPF's 50% stake in Profertil S.A., the region's leading producer of granular urea, for an estimated US$600 million. This acquisition aligns with prior agreements with Nutrien, which owns the remaining 50% of Profertil. Pending approval from YPF's Board of Directors, this deal positions Adecoagro to gain control of 90% of Profertil's share capital, with only 10% held by Asociación de Cooperativas Argentinas. The transaction underscores Adecoagro’s commitment to enhancing its operational capabilities within the agricultural sector.

Profertil stands out for its efficient production methods, boasting an annual capacity of approximately 1.3 million metric tons of urea and 790 thousand metric tons of ammonia. The company plays a critical role in the Argentine market, supplying around 60% of the nation's urea consumption. From 2020 to 2024, Profertil has demonstrated robust financial performance, averaging an annual EBITDA of about US$390 million. Mariano Bosch, CEO of Adecoagro, emphasizes that this acquisition is a milestone that not only expands the company’s scale but also diversifies its portfolio. By leveraging Argentina’s competitive advantages such as the strategic location of Profertil in Bahía Blanca—offering access to competitively priced natural gas and electricity—Adecoagro aims to enhance its long-term performance and operational resilience.

Juan Sartori, Chairman of the Board at Adecoagro, echoes this sentiment, highlighting the company’s commitment to low-cost, high-quality production. The acquisition of Profertil aligns with Adecoagro's vision of becoming a leading supplier in the regional agricultural sector. By controlling a significant portion of urea production, Adecoagro is set to bolster its market presence and contribute to sustainable agricultural practices in South America, furthering its goal of promoting environmentally friendly farming solutions.

In addition to this strategic acquisition, Adecoagro has filed a shelf registration statement with the Securities and Exchange Commission (SEC) allowing for the potential sale of up to $500 million in common shares. This move is part of Adecoagro's broader strategy to access capital markets in a flexible manner, enabling the company to respond to market conditions and funding needs. The filing remains pending SEC approval and does not obligate Adecoagro to sell any specific amount of securities, thereby providing the company with financial leverage as it continues to expand its agricultural operations across Argentina, Brazil, and Uruguay.

As Adecoagro embarks on this transformative journey with Profertil, it positions itself not only as a key player in the agricultural landscape but also as a champion of sustainable production methodologies, reflecting an increasing trend towards environmentally conscious business practices in the region.