New Yara acquisition in Latin America
26.11.2013 | Globenewswire Europe
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acquire OFD Holding Inc. (OFD) from Omimex Resources Inc., for an enterprise
value of USD 425 million. 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.
"I am excited to announce this agreement, which re-confirms Yara's long-term
commitment to Latin America. OFD fits well with Yara, and will further improve
our downstream positioning within the fast-growing cash-crop markets in the
region," said Jørgen Ole Haslestad, President and Chief Executive Officer of
Yara.
"This deal marks a further step for our global growth ambition, adding almost
half a million tons of upstream fertilizer capacity, further leveraging our
capabilities within crop nutrition and value-added fertilizer, to the benefit of
our shareholders and agricultural development in Latin America," said Jørgen Ole
Haslestad.
"We are fully convinced that the knowledge, experience and portfolio of a global
company like Yara, combined with the regional know-how of OFD group of companies
in each of the countries, added to our closeness to the Latin-American farmers,
will help our customers reach the required levels of agricultural productivity,"
said Jorge Bernal, President at Abocol S.A.
OFD owns and operates a fertilizer production facility in Cartagena with an
annual capacity of approximately 320 kilotons (kt) compound NPK, 100 kt calcium
nitrate (CN) and 70 kt ammonium nitrate (AN), with integrated ammonia
production. In addition, OFD has a production capacity of 25 kt single super
phosphate (SSP) per annum through Fosfatos de Boyaca in Colombia. Finally, OFD
controls approximately 700 kt of NPK blending capacity across 12 sites and 100
kt 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 kt of fertilizer, generating net revenues of USD 796
million and an EBITDA of USD 35 million. The EBITDA was USD 64 million in 2011.
The USD 425 million enterprise value includes working capital of USD 332
million. Yara estimates an annual synergy potential of USD 20 million through
logistics and sourcing optimization and substituting third-party sourced
products with Yara products.
In connection with the acquisition of OFD, Yara is also acquiring real estate
from the same seller for future expansion in the same region, valued at a total
of USD 40 million.
The proposed transaction is subject to due diligence, approval of competition
authorities and other customary approvals. Closing is expected to take place
during the second quarter of 2014.
Contact
Thor Giæver, Investor Relations
Telephone (+47) 24 15 72 95
Cellular (+47) 48 07 53 56
E-mail thor.giaver@yara.com
Esben Tuman, Media Relations
Cellular (+47) 90 50 84 00
E-mail esben.tuman@yara.com
About Yara
Yara delivers solutions for sustainable agriculture and the environment. Our
fertilizers and crop nutrition programs help produce the food required for the
growing world population. Our industrial products and solutions reduce
emissions, improve air quality and support safe and efficient operations.
Founded in Norway in 1905, Yara has a worldwide presence with sales to 150
countries. Safety is always our top priority.
www.yara.com
About OFD Holding Inc.
OFD Holding Inc. is a Latin American producer and distributor of fertilizers
with presence in 6 countries of the region and is owned by Omimex Resources,
Inc., a U.S.A. based company.
www.abocol.com
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by GlobeNewswire on behalf of
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Source: Yara International ASA via GlobeNewswire
[HUG#1745697]