CF Industries completes purchase of Waggaman ammonia plant
CF Industries Holdings announced on Friday that it has completed its acquisition of Incitec Pivot Limited’s (IPL’s) ammonia-production complex in Waggaman, Louisiana.
CF Industries said in a press release that under the deal it bought the facility and associated assets for $1.675bn, subject to adjustments. It added that of the purchase price $425mn was set aside for a long-term ammonia offtake agreement under which CF Industries will supply up to 200,000 tonnes of ammonia per year to IPL’s Dyno Nobel subsidiary at production economics.
CF Industries’ president and CEO, Tony Will, commented that: ‘We are pleased to grow our industry-leading ammonia production capabilities with the addition of IPL’s Waggaman ammonia production facility and team. This transaction deploys our capital efficiently, delivering immediate profitable growth by adding one of the newest ammonia production units in North America into our existing network.’
The company also noted that, in addition to its offtake agreement with IPL, it will fulfil medium- and long-term offtake agreements with two customers that were in place prior to the acquisition.
