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  "documentTitle": "Agrium (AGU)",
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  "authorName": "Barry Rosenstein",
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  "presentationDate": "2013-01-01 00:00:00",
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  "notes": "Uses a list of criteria to critique a specific M&A deal, supported by pie charts showing GP mix divergence.",
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      "text": "AWB Landmark did not meet key criteria for acquisition of a distribution business in a new geography (where traditional synergies are limited)",
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      "text": "Criteria #4 – Experience To Improve Business: Landmark has a very different earnings mix than Agrium’s core North American Retail business, with a distinct minority of gross profit coming from businesses that Agrium had real familiarity with",
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      "text": "Criteria #2 – Attractive End Market: Australian retail is a mature, low growth market",
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      "text": "Criteria #3 – Customer / Supplier Overlap: No overlap of Landmark’s customers and Retail’s core North American customers. Limited potential benefit to existing suppliers, particularly given extremely different mix of business",
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      "text": "Capital Allocation: AWB Landmark did not meet key criteria for acquisition of a distribution business in a new geography (where traditional synergies are limited)",
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      "text": "Criteria #1 – Attractive Price: Agrium paid ~15x EBITDA (net of divestiture), and took significant execution risk by agreeing to acquire all of AWB Landmark without an agreement to divest its sizeable grain handling business",
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      "text": "(1) Retail represents 2010 GP mix. Indicative Landmark GP contribution as per AWB Landmark fairness opinion (page 18); available in AWB Scheme Booklet dated 10/7/10 (page 56).",
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      "text": "Case Study: Retail Acquisition – AWB Landmark",
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