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Agrium to Expand Controlled Release Business through Nu-Gro Acquisition

25 Nov 2005 - Agrium Inc. announced that it has entered into an agreement to acquire from Spectrum Brands Inc. its Nu-Gro fertilizer technology and professional products businesses. Agrium will fund the purchase price of $86-million through existing lines of credit. The transaction is expected to close in January 2006 and is subject to regulatory approval. This acquisition provides Agrium with new products with strong, stable margins and is expected to be immediately accretive to earnings.
 
Nu-Gro is a manufacturer of controlled release and professional turf products. Nu-Gro has strong customer relationships and a number of widely recognized brands. Agrium is acquiring the four production facilities that manufacture these products, as well as the Nu-Gro head office in Brantford, Ontario.
 
Agrium will retain a multi-year supply arrangement with Spectrum for its Consumer Business. Nu-Gro's fertilizer technology and professional products employees, including John Hill and his senior management team as well as other key marketing and technology personnel, are expected to join Agrium as part of the transaction.