By Dominic Chopping
Norwegian fertilizer company Yara International ASA (YAR.OS)
said Tuesday it has entered into an agreement to acquire fertilizer
producer OFD Holding Inc. (OFD) from Omimex Resources Inc., for an
enterprise value of $425 million.
MAIN FACTS:
-The acquired business comprises production facilities in
Colombia and distribution companies across Latin America.
-The main companies included in the transaction are Abocol
(Colombia), Misti (Peru), Omagro (Mexico), Fertitec (Panama and
Costa Rica), Cafesa (Costa Rica) and Norsa (Bolivia).
-The transaction further strengthens Yara's downstream footprint
and growth platform in Latin America, and is highly complementary
to its recent acquisition of Bunge's fertilizer business in
Brazil.
-OFD owns and operates a fertilizer production facility in
Cartagena.
-In addition, OFD has further production capacity through
Fosfatos de Boyaca in Colombia.
-OFD controls nitrogen phosphorus and potassium (NPK) blending
capacity across 12 sites and liquid fertilizer capacity as part of
its fertilizer distribution network across Colombia, Mexico, Peru,
Bolivia, Costa Rica and Panama.
-In 2012 OFD sold 1,131 kilotons of fertilizer, generating net
revenues of $796 million and an Ebitda of $35 million.
-Yara estimates an annual synergy potential of $20 million
through logistics and sourcing optimization and substituting
third-party sourced products with Yara products.
-Yara is also acquiring real estate valued at $40 million from
the same seller for future expansion.
-Closing is expected during 2Q 2014 subject to approvals.
-Shares closed Monday at NOK, valuing the company at NOK.
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@WSJNordics
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