Agrium Agrees to Sale of Minority Interest in Medicine Hat Nitrogen Facility and Announces $900-Million Substantial Issuer Bid to Repurchase Shares

Agrium Inc.

announced today that it has reached an agreement for Glencore International plc to sell Viterra's minority position in a nitrogen facility located in Medicine Hat, Alberta to CF Industries Holdings, Inc. for $915-million. The resulting net purchase price for the portion related to the retail business is estimated to be about $175-million plus approximately $400-million in retail working capital. This purchase price is net of operating cash flow generated by the Agri-Products business from March 31, 2012 until close of the transaction, which is expected in the fourth quarter of 2012. In 2011, Viterra's total Agri-Products business generated $2.4-billion in revenue and $244-million in EBITDA according to Viterra's annual report. We estimate that approximately $100-million of EBITDA represents the retail portion of the 2011 earnings, excluding any synergies to be obtained by Agrium in the future.