Yara acquires OFD from Omimex Resources for $ 425 million

Yara International ASA has inked a pact to acquire OFD Holding Inc from Omimex Resources Inc for an enterprise value of $ 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 fertiliser business in Brazil.
 
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Jorgen Ole Haslestad, President and Chief Executive Officer, Yara, said, "OFD fits well with Yara, and will further improve our downstream positioning within the fast-growing cash-crop markets in the region. This deal marks a further step for our global growth ambition, adding almost half a million tonnes of upstream fertiliser capacity, further leveraging our capabilities within crop nutrition and value-added fertiliser, to the benefit of our shareholders and agricultural development in Latin America.”
 
OFD owns and operates a fertiliser production facility in Cartagena with an annual capacity of approximately 320 kilotonnes (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 fertiliser capacity as part of its fertiliser distribution network across Colombia, Mexico, Peru, Bolivia, Costa Rica and Panama.