AgroGalaxy concludes purchase of Agrocat and starts 2022 with 144 stores in the country

AgroGalaxy, one of the largest retail platforms for agricultural inputs and services aimed at Brazilian agribusiness, today concluded the purchase of 80% of the shareholding of Agrocat Distribuidora de Insumos Agrícolas Ltda, a company that offers integrated solutions for agribusiness and covers 93 municipalities in the states of Mato Grosso and Rondônia.

“We are very happy with the completion of this deal. From now on, we will be even better able to bring the best products and services on the market to farmers in Mato Grosso and Rondônia, helping them to further expand their production and profitability”, says Marco Teixeira, vice-president of operations North/ Central-West and who will command Agrocat. “Our main objective is to increasingly contribute to the growth and consolidation of Brazilian agribusiness, a fundamental sector for the Brazilian economy”, adds Teixeira.

With the new acquisition, AgroGalaxy now has 144 stores in total, 11 of which are Agrocat, three located in Rondônia and eight in Mato Grosso. In 2021, AgroGalaxy ended the year with 133 stores in the country.

“Agrocat has more than 20 years of history built on a deep commitment to Brazilian agriculture and its customers, values ​​that are in line with those of AgroGalaxy. This story will continue and with the arrival of AgroGalaxy, producers in the 93 municipalities, which today total an area of ​​almost 4 million hectares, will have even more innovations to achieve their goals”, reinforces Welles Pascoal, CEO of AgroGalaxy.

The acquisition of Agrocat was based on 3 major fundamental pillars: 1) AgroGalaxy's strategy of growing through mergers and acquisitions in regions where it does not yet operate and where organic penetration is difficult, 2) the potential to accelerate the growth plan of both companies through synergies and value creation levers, and 3) Agrocat's high levels of professionalism, with well-aligned management and operations teams, present in the field, and extremely competent.

Agrocat was the second acquisition announced by the company in 2021. Before it, in June last year, AgroGalaxy announced the purchase of Ferrari Zagatto, from Paraná, which was concluded in August of that same year. In April the purchase of Boa Vista had also been completed. If it had acquired the three companies during the last 12 months ending in September 2021, AgroGalaxy's net revenue would total R$6,7 billion. The total reported by the company in the same period was R$5,6 billion.