As part of the ongoing focus on optimizing business,
) has completed a strategic review of its Agrium Advanced
Technologies ("AAT") business unit.
Under the review process, Agrium will reestablish the Advanced
Technologies (AAT) business unit into two separate units,
Wholesale and Retail in the first quarter of 2014.
The Wholesale business unit of Agrium will include AAT's
agriculture business, which comprises Environmentally Smart
Nitrogen ("ESN") and micronutrients. This will help Agrium
effectively leverage the Wholesale segment's manufacturing and
Prior to the creation of AAT, both micro-nutrients and ESN
businesses belonged to Agrium's Wholesale department. Even after
this business structure alteration, ESN will remain a premium
product of Agrium, given the strong surge in demand for this
industry leading and environmentally-friendly product.
The Turf and Ornamental and Direct Solutions businesses of
Agrium will also undergo strategic review. The review may end up
with all possible options, including divesture of the business
units. The final review on these business units is expected to be
complete by the first half of 2014.
Further insight on the development of the review, including
the impact of any reorganization cost, will be provided by Agrium
as it works through the transition in the next few months.
Agrium plans to execute this transition process seamlessly
with minimum business disruption for customers, suppliers and
employees. The restructuring is expected to have a positive
impact on Agrium's earnings.
Agrium currently carries a Zacks Rank #4 (Sell).
Some better-ranked companies in the fertilizer industry
The Scotts Miracle-Gro Co.
CF Industries Holdings, Inc.
). While The Scotts Miracle and China Bluechip sport a Zacks Rank
#1 (Strong Buy), CF Industries retains a Zacks Rank #2 (Buy).
AGRIUM INC (AGU): Free Stock Analysis Report
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CF INDUS HLDGS (CF): Free Stock Analysis
SCOTTS MIRCL-GR (SMG): Free Stock Analysis
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