UFA Completes $48.2 Million Acquisition of AgraCity Assets

Why It Matters

The deal safeguards farmer supply chains and expands UFA’s product portfolio, delivering immediate value to Western Canada’s agricultural sector while reinforcing the cooperative’s market presence.

Key Takeaways

• UFA completes $48.2 M acquisition of Agra City assets
• Deal includes Bellplane fertilizer blender and Agra City registrations
• UFA will make farmers whole for undelivered products
• Integration retains Agra City staff to preserve business continuity
• Acquisition expands UFA’s generic chemical footprint across Western Canada

Summary

UFA announced the completion of a $48.2 million acquisition of Agra City’s crop‑protection assets, receiving court approval on March 31 and officially taking control on April 1. The transaction adds a finished Bellplane fertilizer blending plant, a 20,000‑ton storage capacity, and Agra City’s product registrations, intellectual property, fleet and Saskatoon packaging facility to UFA’s portfolio.

The purchase price is split roughly $13 million for the Bellplane blender and $35 million for the remaining assets, explicitly excluding the under‑construction fertilizer plant. UFA’s CEO Fred Ton highlighted that the deal is structured to make registered farmers whole for products they paid for but never received, a commitment embedded in the acquisition price.

Ton stressed that preserving Agra City’s workforce is a priority, noting that the integration will focus on continuity rather than layoffs. He also promised rebranding under the UFA umbrella and reiterated the cooperative’s farmer‑first ethos, saying, “We are for farmers and will deliver the products they need.”

The acquisition fills a strategic gap in UFA’s generic chemical offering, extending its geographic reach across Saskatchewan and Alberta and restoring a reliable supply chain for western Canadian growers. By owning the assets and the distribution network, UFA can offer lower‑cost, high‑quality chemicals, strengthening its competitive position and supporting farm profitability.

Original Description

United Farmers of Alberta (UFA) has completed its acquisition of key assets of AgraCity Crop & Nutrition Ltd. after receiving final approval from the Saskatchewan Court of King’s Bench on March 31.

UFA’s $48.2 million bid was the top offer for the Saskatoon-based crop input provider, which entered creditor protection in December 2025.

The assets acquired by UFA include AgraCity’s portfolio of generic crop protection product registrations, AgraCity’s packaging and labelling facility in Saskatoon, AgraCity’s distribution fleet, and the existing Genesis Fertilizer & Grain fertilizer distribution centre at Belle Plaine, Sask.

“This is an incredibly significant move, not just for UFA, but for the agricultural community in Western Canada. If I talk about UFA specifically, generic chemicals is, in my mind, a hole that we have in our current offering. This brings instant capacity, credibility and the opportunity to serve a bigger geography than we have in the past, with a large customer base in Saskatchewan and Alberta,” says Fred Thun, UFA president and CEO.

“If I think about the agricultural community, AgraCity is all about providing quality products at low prices on a timely basis,” he continues. “This is a good thing, because now we reopen that supply chain that was challenged in the last couple of years. And not only that, this business is ultimately owned by the Western Canadian producer.”

Within the $48 million purchase price, approximately $13 million was assigned to the fertilizer blending facility, which has around 20 thousand tonnes of storage capacity, with the remaining $35 million accounting for AgraCity’s assets and crop protection portfolio. The deal does not include the proposed Genesis Fertilizers nitrogen production plant at Belle Plaine.

The transaction was structured to ensure farmers who did not receive product they had paid for from AgraCity will be made whole by UFA, says Thun.

“It is April 1, so it’s going to be hard for us to meet immediate needs in the spring season, but that is a focus of the business,” he says. “We’re here to provide value to the farmer, so we will be reaching out to farmers to see what their needs are and how we can meet them in the timely, most cost-effective fashion possible.”

Thun says they look forward to having AgraCity’s employees join UFA.

“The opportunity for AgraCity employees to contribute and be something, be part of something really incredible. I think is fantastic,” he says. “Integration is always about continuity. So as we go into AgraCity, the number one priority is how to preserve business continuity, make this business effective, both in the short term and the long term.”

According to court documents, five other bidders submitted offers for some or all of AgraCity’s assets — HarvestGuard, AGX Pioneer Enterprise Ltd., FH Agrochemical International Trade Pte. Ltd., Everagro HK Ltd. and Prosoils Inc.

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