PGG Wrightson buying strategic interest in Uruguay

Agria Corp. subsidiary PGG Wrightson (PGW) signed an agreement Tuesday to purchase 50 percent of the shares of Agrocentro Uruguay.

PGW subsidiary PGG Wrightson Seeds has been a key strategic partner and has supported Agrocentro Uruguay since it started in 2007.

Agrocentro Uruguay has been a regional pioneer in the development of advanced technology systems for meat production and forage-based seed production. It also functions as a market leader in sales of inputs and services. 

"It is a pleasure to announce this transaction as we continue to expand Agria's global footprint in high growth markets such as South America," Agria Executive Chairman and PGW Board Chairman Alan Lai said. 

The transaction involves an upfront payment and a capped earn out component over the next three years. Both the upfront payment and capped out component have been based on the performance of the business. The target date of the settlement is Aug. 31.  

"Following settlement, PGW and Agrocentro Uruguay will continue operating as they do today, as two separate companies. However, the businesses will work together collaboratively to consolidate their operations where commercially sensible to provide better and more efficient service to farmers," PGW's Group General Manager of Seed and Grain John McKenzie said. 

"We expect that this strengthening of our partnership will in time result in improved services, logistics, product development, technology transfer and new business opportunities that will help to develop and grow the Uruguayan agricultural sector," McKenzie said.   

This announcement contained forward-looking statements, including the management's commentary, made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.

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