Yara International ASA, through its wholly owned subsidiary Yara UK Limited, has agreed to sell its 50 percent stake in GrowHow UK Group Limited to CF Industries for a total enterprise value (50 percent basis) of $ 648 million, of which $ 68 million relates to an unfunded pension liability.
Yara and CF Industries have each owned 50% of GrowHow since 2007 and 2010 respectively. A shoot-out process defined in the shareholder agreement was triggered early 2015 and both Yara and CF Industries have bid for the assets during this process.
GrowHow has two production sites in Ince and Billingham with a total production capacity of approximately 0.8 million tonnes of ammonia, 1.1 million tonnes of ammonium nitrate and 0.5 million tons of compound NPK. With limited export possibilities, GrowHow primarily serves the UK fertiliser market. In 2014, GrowHow delivered an EBITDA of $ 156 million based on IFRS.
"The final bid from CF represents an attractive value to Yara. We remain dedicated to British agriculture and look forward to continue to work with UK farmers to increase their yield and profitability with our high quality products and services. Furthermore, Yara's growth strategy remains on track, as we work hard both to deliver already committed projects and to develop our pipeline of new opportunities,” said Torgeir Kvidal, president and CEO of Yara.
Yara and CF Industries have each owned 50% of GrowHow since 2007 and 2010 respectively. A shoot-out process defined in the shareholder agreement was triggered early 2015 and both Yara and CF Industries have bid for the assets during this process.
GrowHow has two production sites in Ince and Billingham with a total production capacity of approximately 0.8 million tonnes of ammonia, 1.1 million tonnes of ammonium nitrate and 0.5 million tons of compound NPK. With limited export possibilities, GrowHow primarily serves the UK fertiliser market. In 2014, GrowHow delivered an EBITDA of $ 156 million based on IFRS.
"The final bid from CF represents an attractive value to Yara. We remain dedicated to British agriculture and look forward to continue to work with UK farmers to increase their yield and profitability with our high quality products and services. Furthermore, Yara's growth strategy remains on track, as we work hard both to deliver already committed projects and to develop our pipeline of new opportunities,” said Torgeir Kvidal, president and CEO of Yara.