August 23, 2011
Adecoagro secures Argentine farmland
In line with Adecoagro S.A.'s growth strategy, it has acquired 100% of the common shares of Compania Agroforestal de Servicios y Mandatos S.A. for US$18 million, the company announced on August 19.
Compania Agroforestal de Servicios y Mandatos S.A. owns a 4,960-hectare farm named "El Colorado" located in the region of Bandera, in the province of Santiago del Estero, Argentina. The transaction is subject to anti-trust approval.
Adecoagro said El Colorado is an attractive opportunity for it 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 soy, corn, wheat and sunflower) and an additional 1,820 hectares used for cattle grazing activities with potential for crop production.
Adecoagro said it 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.