Agrium Inc. (TSE:AGU), the largest seller of farm products, retreated to the lowest in nearly three months after saying it will sell its turf and ornamental business to Koch Agronomic Services, an affiliate of Koch Fertilizer LLC, for $85 million including working capital.
Agrium fell to C$99.05, the lowest intraday price since Feb. 21, and was trading at C$99.48, down 0.9 percent, at 1:39 p.m. in Toronto.
The deal is part of a strategic review process completed in 2013 with regards to the discontinued operations of the former Agrium Advanced Technologies business unit, Calgary, Alberta-based Agrium said in a statement today.
The sale is expected to close in the second quarter.
The turf and ornamental business provides slow and controlled release fertilizers to turf and horticulture markets across the United States and Canada.
"We are very pleased with the value received for the Turf and Ornamental business and will continue to focus on optimizing our portfolio and product lines to generate additional value for our shareholders," Agrium Chief Executive Officer Chuck Magro said in the statement.