SOURCE: Agria Corporation

Agria Corporation

June 25, 2015 08:30 ET

Agria Subsidiary PGG Wrightson Announces Acquisition

BEIJING, CHINA--(Marketwired - Jun 25, 2015) - Agria Corporation (NYSE: GRO) (the "Company" or "Agria") today announced that its New Zealand-listed subsidiary, PGG Wrightson Limited (NZSE: PGW) ("PGW"), has agreed to purchase the turf irrigation business of Advanced Irrigation Systems Limited ("AIS") with settlement scheduled to take place on June 30, 2015.

AIS was established in 1989 and has become one of the market leaders in the New Zealand turf irrigation sector. PGW CEO Mark Dewdney commented, "Turf irrigation is highly complementary for PGW's operations and also has synergies with our turf business. Advanced Irrigation Systems brings with it sole distribution of Rain Bird golf irrigation products and six dedicated sales, design and support staff driving business operations across the country, and will continue to be a center of turf irrigation excellence as part of PGW. This acquisition, while relatively small, expands PGW's offerings into the design, consultancy and project management aspects of the turf irrigation sector and fits well with our strategy of becoming the market leader in water and irrigation." 

PGW also announced that it had agreed with Silver Fern Farms (SFF) to terminate the agreement entered into in 2009 governing livestock procurement services provided by the Company. Mr. Dewdney said, "The agreement with SFF was entered into at a different time with respect to our business strategies and we have agreed that it was no longer needed to regulate the livestock procurement relationship. PGW has supplied agency procurement for SFF for many years and both parties are confident that that this relationship will continue to develop and strengthen without the formality of a prescriptive agreement. We believe this move allows us to be more flexible to respond to seasonal and climatic changes that regularly occur in the livestock business. We feel that due to the maturity of the relationship we have with SFF, we will both be better-positioned to focus our efforts on working together to deliver an agency service that best accommodates our farmer customers and mutual interests."

About Agria Corporation
Agria (NYSE: GRO) is a global agricultural company with three principal business segments: Seed and Grain; Crop Protection, Nutrients and Merchandise; and Rural Services. The Seed and Grain segment is engaged in research and development, production and sale of a broad range of seed products and trading of seed and grain products globally. The Crop Protection, Nutrients and Merchandise segment operates an extensive chain of retail stores that supply farm input materials. The Rural Services segment provides livestock trading, wool trading, irrigation and pumping, real estate agency and other agriservices. For more information about Agria Corporation, please visit www.agriacorp.com.

Safe Harbor Statement:
This announcement contains forward-looking statements. These statements, including the management's commentary, are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Agria may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Agria's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in Agria's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this announcement unless otherwise stated and Agria does not undertake any obligation to update any forward-looking statement, except as required under applicable law.