Agrium Inc. has reached an agreement in principle with Imperial Oil to acquire its Western Canadian fertilizer distribution assets.

Agrium Inc. has reached an agreement in principle with Imperial Oil to acquire its Western Canadian fertilizer distribution assets. Under the agreement, Agrium will acquire the fertilizer storage and distribution assets and associated long-term leases for land at more than 190 independently operated retail locations. The agreement also includes exclusive fertilizer supply agreements with the independent operators. The purchase price of $22 million will be funded from cash on hand. The transaction is expected to close in the third quarter of 2005, subject to a definitive purchase and sale agreement, due diligence and regulatory approval.