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Adds details on sale
March 20 (Reuters) – Australia’s top fertiliser maker Incitec Pivot Ltd IPL.AX said on Monday it had reached an agreement to sell its U.S. ammonia manufacturing facility to CF Industries Holdings CF.N in a $1.68 billion deal.
Sale of the facility located in Waggaman, Louisiana (WALA) is in-line with Incitec’s ongoing restructuring plan, which will see the company spin off its explosives manufacturing business – Dyno Nobel.
Incitec has also secured a $425 million supply agreement with CF for up to 200,000 short tonnes of ammonia per annum to support the Dyno Nobel Americas (DNA) explosives business, it said in a statement. The agreement is for a 25-year period.
“Our announcement today represents a pivotal step in the execution of our strategy to enhance the focus of our businesses on the high value technical and service needs of our explosives customers,” Incitic CEO Jeanne Johns said.
The net cash proceeds from the sale after deducting tax is expected to be $837 million, Incitec added.
(Reporting by Harish Sridharan in Bengaluru; Editing by Rashmi Aich)
((Harish.Sridharan@thomsonreuters.com; Twitter: https://twitter.com/damnit_saladin;))
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