Agrium Inc. is a leading global producer and marketer of agricultural nutrients, industrial products, specialty fertilizers, and a major retail supplier of agricultural products and services in both North and South America. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. Agrium’s strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities. Our strategy places particular emphasis on growth opportunities that both increase and stabilize our through-the-cycle earnings profile in the continuing transformation of Agrium.

Agrium’s corporate headquarters is located in Calgary, Alberta, Canada.  Agrium is traded on the Toronto and New York stock exchanges under the symbol AGU.

Retail

Our Retail business had sales close to $2-billion in 2006. We market seed, crop protection products, nutrients and crop services directly to growers across much of North and South America.

Our recent acquisition of Royster-Clark enhances our geographic diversity.

We now operate approximately 500 retail centres in the U.S. and South America.

We estimate our Retail operations provide products and services to over 50,000 growers every year. Our Retail customers are diverse, ranging from corn farms in the Midwestern U.S. and Argentina, potato farms in Idaho and grape vineyards and almond tree farms in both California and Chile. We supply these growers with virtually all the ingredients they need to help nature nourish the soil and protect the crop in order to produce high quality, healthy food for a growing world population. Our Retail business provides an important and stable base to our earnings profile.

Wholesale

Our Wholesale business had sales in excess of $2-billion dollars in 2006. Wholesale produces, distributes and markets the three major crop nutrients: nitrogen, phosphate and potash, as well as sulphur, controlled release products and micronutrients. We sell more than eight million tonnes of these nutrient products annually, primarily sourced from our production facilities. These products are sold in North America and around the world, with over 85 percent marketed to the agricultural sector. Given the seasonal nature of the majority of our business, the marketing of these products is facilitated by our extensive distribution system, including over two million tonnes of owned and leased storage.

Advanced Techologies

We recently acquired two specialty businesses.

In August 2006, we conlcuded the purchase of certain fixed assets and inventory of Pursell Technologies Inc. and certain of its affiliates (PTI) for a purchase price of $74.5-million (U.S.). 

Agrium's specialty fertilizer product line will now include those formerly produced and marketed by PTI including Polyon(R) polymer coated fertilizers, Trikote(R) polymer sulphur coated fertilizers and Precise(R) controlled release crop protection products. Agrium will also own and operate the Sylacauga, Alabama production, research and development facility. 

Full-year 2006 EBITDA from the acquired PTI assets is expected to be approximately $10-million.

In January 2006, Agrium acquired the Nu-Gro fertilizer technology and professional products businesses.

Nu-Gro produces and distributes controlled release and professional turf products, with total annual sales of approximately $80-million and average gross margins of about 24 percent.  Primary markets include golf course and lawn care applications among others.

The PTI assets, Nu-Gro and Agrium's pre-existing products will be combined to create a new Agrium Advanced Technologies to optimize the stable and growing earnings from this segment. The acquired assets will be operated under the name Agrium U.S. Specialty Products.