Agrium Remains Committed to Its Highly Successful Integrated Strategy; JANA's Attempt to Run Its Own Slate is Almost Certain ...
November 19 2012 - 12:34PM
Marketwired
Agrium Inc. ("Agrium" or the "Corporation") (TSX:AGU) (NYSE:AGU)
commented today on the announcement by JANA Partners LLC that it
plans to run its own slate of nominees for election to Agrium's
Board.
In a statement, Agrium President and CEO Mike Wilson said:
"The facts are straightforward. Agrium remains committed to its
highly successful integrated strategy. JANA has been trying for
over six months to obtain support for its idea that Agrium should
spin off or sell its retail operations. Agrium's shareholders have
overwhelmingly rejected JANA's ideas. As a result, we believe
JANA's attempt to run its own slate for Agrium's Board is almost
certain to fail."
"The fundamental question is whether or not a break-up of Agrium
would create compelling, sustainable value for its shareholders. As
we have made clear, the breakup of Agrium will destroy value rather
than create it."
"Before reaching the unanimous conclusion to reject a spin off
of Retail, the independent directors of the Board spent two months
evaluating all of JANA's ideas with our independent financial
advisor. Since that time, our management team has devoted an
extraordinary amount of time meeting with our analysts and our
shareholders, including JANA, to review our integrated strategy and
discuss JANA's ideas."
"We listen to our shareholders and the overwhelming majority
continue to support the company's position. Over the past year,
Agrium has implemented three dividend increases, a Cdn$900-million
share buyback and supplemented our retail disclosure. Other than
JANA, shareholders are not asking Agrium to consider a Retail
spin-off or to evaluate any other structural changes. Shareholders
have told us that they invest in Agrium in part because they want
exposure to retail and the advantages of our integrated model."
About Agrium
Agrium Inc. is a major Retail supplier of agricultural products
and services in North America, South America and Australia and a
leading global Wholesale producer and marketer of all three major
agricultural nutrients and the premier supplier of specialty
fertilizers in North America through our Advanced Technologies
business unit. Agrium's strategy is to grow across the value chain
through acquisition, incremental expansion of its existing
operations and through 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 earnings profile in the continuing
transformation of Agrium.
Forward-Looking Statements
Certain statements and other information included in this press
release constitute "forward-looking information" within the meaning
of applicable Canadian securities legislation or constitute
"forward-looking statements" within the meaning of applicable U.S.
securities legislation (collectively, the "forward-looking
statements"). All statements in this press release, other than
those relating to historical information or current conditions, are
forward-looking statements including, but not limited to,
statements as to management's expectations with respect to,
business and financial prospects, the execution of its business
strategy, the creation of value for shareholders and the future
performance and value of its retail operations. These
forward-looking statements are subject to a number of risks and
uncertainties, many of which are beyond our control, which could
cause actual results to differ materially from such forward-looking
statements, and are qualified by the assumptions that are stated or
inherent in such forward-looking statements.
Events or circumstances that could cause actual results to
differ materially from those in the forward-looking statements
include, but are not limited to, the expected combination benefits
and costs savings from recent transactions not being fully realized
or not being realized within the expected time frame, disruptions
from the transactions making it more difficult to maintain
relationships with customers, employees and suppliers, recent or
proposed business acquisitions not being integrated successfully or
such integration being more difficult, time-consuming or costly
than expected, delays or difficulties with the planned increase in
potash production capabilities or expansion of the Egyptian
nitrogen facility, general business and economic conditions,
interest rates, exchange rates and tax rates, weather conditions,
crop prices, the supply, demand and price level for our major
products, gas prices and gas availability, operating rates and
production costs, domestic fertilizer consumption and any changes
in government policy in key agriculture markets, including the
application of price controls and tariffs on fertilizers and the
availability of subsidies or changes in their amounts, changes in
development plans, construction progress, political risks,
including civil unrest, actions by armed groups or conflict,
governmental and regulatory requirements and actions by
governmental authorities, including changes in government policy,
changes in environmental, tax and other laws or regulations and the
interpretation thereof and other risk factors detailed from time to
time in Agrium reports filed with the Securities and Exchange
Commission or Canadian securities regulators. Agrium disclaims any
intention or obligation to update or revise any forward-looking
statements in this press release as a result of new information or
future events, except as may be required under applicable U.S.
federal securities laws or applicable Canadian securities
legislation.
Contacts: Agrium Inc. Richard Downey Vice President,
Investor/Corporate Relations (403) 225-7357 Agrium Inc. Todd
Coakwell Manager, Investor Relations (403) 225-7437 Agrium Inc.
Mark Thompson Analyst, Investor Relations (403) 225-7761