October 4, 2014
Yara acquires OFD Holding
Yara International ASA has completed the acquisition of OFD Holding Inc. (OFD) and the two companies are now in the process of integration.
In a press statement, Yara said all regulatory requirements had been secured from various government agencies. Commitments, it added, have also been made, although these are not expected to materially impact the profitability of the acquisition.
The OFD operations comprise of production facilities in Cartagena, Colombia, and distribution companies across South America.
"This is an important milestone which paves the way for Yara''s further development in Latin America," said Jørgen Ole Haslestad, president and CEO of YaraInternational ASA.
He added that the acquisition would create "value for Yara''s shareholders" and contribute to the "agricultural, industrial and mining sector growth in the region."
Mr. Haslestad welcomed former employees of OFD in Colombia, Costa Rica, Mexico, Bolivia, Peru and Panama to their "new company."
The final value of the acquisition is US$377 million, US$47 million lower than previously announced, due to a correspondingly lower level of working capital, Yara said.
The transaction will be financed from the existing cash balance of Yara International.
OFD owns and operates a fertiliser production facility in Cartagena with an annual capacity of about 320 kilotons (kt) compound of NPK, 100kt of calcium nitrate (CN) and 70kt of ammonium nitrate (AN), with integrated ammonia production.
In addition, OFD controls approximately 700kt of NPK blending capacity across 12 sites and 100kt liquid fertiliser capacity as part of its fertiliser distribution network across Colombia, Mexico, Peru, Bolivia, Costa Rica and Panama.
In 2013 OFD sold 1,211kt of fertiliser, generating net revenues of US$693 million and an EBITDA of US$42 million.