Adecoagro Acquires Farmland in Argentina
LUXEMBOURG, Aug. 19, 2011 /PRNewswire/ — ADECOAGRO S.A. (NYSE:AGRO, Bloomberg: AGRO US, Reuters. AGRO.K), one of the leading agricultural companies in South America, announced today that in line with its growth strategy, it has acquired 100% of the common shares of Compania Agroforestal de Servicios y Mandatos S.A., a company which owns a 4,960 hectare farm named “El Colorado”, located in the region of Bandera, in the province of Santiago del Estero, Argentina, for a total price of US$18.0 million. The transaction is subject to anti-trust approval.
El Colorado is an attractive opportunity for Adecoagro to continue generating value through the transformation of farmland and expanding its production of agricultural commodities.
Based on initial estimates, El Colorado has approximately 2,411 hectares currently used for planting crops (including soybean, corn, wheat and sunflower) and an additional 1,820 hectares used for cattle grazing activities with potential for crop production. Adecoagro plans to transform the hectares currently used for cattle grazing and put them into crop production during the 2011/12 harvest season. As a result, Adecoagro expects this acquisition to expand its planted area during the 2011/12 harvest year by approximately 3,000 hectares.
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Adecoagro is a leading agricultural company in South America. Adecoagro owns over 283 thousand hectares of farmland and several industrial facilities spread across the most productive regions of Argentina, Brazil and Uruguay, where it produces over 1 million tons of agricultural products including corn, wheat, soybeans, rice, dairy products, sugar, ethanol and electricity among others.
SOURCE Adecoagro S.A.