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OCI International Completes Sale of IFCO to Koch Ag & Power Answers


  • OCI International (“OCI”) declares a hit of completion of the sale of 100% of its fairness pursuits in Iowa Fertilizer Corporate LLC (“IFCO”) to Koch Ag & Power Answers (“KAES”)
  • The transaction was once valued at USD 3.6 billion on a money isolated debt isolated foundation and adopted a aggressive procedure
  • The terminating marks a vital milestone in OCI’s way to release price for shareholders

AMSTERDAM, Aug. 29, 2024 /PRNewswire/ — OCI International (Euronext: OCI), a important world manufacturer and distributor of hydrogen merchandise is happy to announce the a hit terminating of the divestment of 100% of its oblique pastime in its large-scale US greenfield nitrogen fertilizer facility Iowa Fertilizer Corporate LLC, in Wever, Iowa to Koch Ag & Power Answers, signed on December 18, 2023, following the desired regulatory and shareholder approvals.

The terminating marks a vital milestone in OCI’s ongoing strategic price founding progress. The anticipated cumulative crystallization of roughly USD 9.5 billion improper money proceeds from the just lately introduced gross sales of Fertiglobe, IFCO and OCI Blank Ammonia provides OCI important flexibility in order on its capital allocation priorities, together with deleveraging at a improper degree in addition to returning a significant quantum of capital to shareholders.

IFCO was once the primary greenfield nitrogen fertilizer plant inbuilt the US in over 25 years, and the most important non-public development venture in Iowa’s historical past, including greater than 3,500 jobs throughout the development length. Since commissioning in April 2017, the ability has revitalized a core business in the US reflecting OCI’s persisted funding within the plant’s ongoing building, and within the climate pocket’s distribution and logistics infrastructure to assistance the Midwest’s agriculture business. OCI is assured that below KAES’s stewardship, IFCO shall be smartly situated for its upcoming section of enlargement.

For more info at the transaction, reference is made to the clicking let fall revealed on December 18, 2023.

Commenting at the announcement, Nassef Sawiris, Govt Chairman of OCI stated: “The successful closing of the IFCO transaction is the latest example of OCI’s steadfast commitment to creating value for its shareholders. This milestone further reinforces OCI’s standing and record as a successful developer, operator and investor. Looking ahead, we will continue to deploy our distinctive knowledge, management expertise and entrepreneurial spirt into further value accretive ventures.”

Ahmed El Hoshy, CEO of OCI stated: “We are exceptionally proud of OCI and the IFCO operating team’s remarkable achievements in converting a cornfield into a world-class global nitrogen facility and in revitalizing a core industry in the United States. KAES today is opportunely positioned both strategically and geographically to leverage and diversify its extensive platform, and to create significant opportunities to drive the facility’s future growth. We have been impressed by the entire KAES team throughout this process and wish them the best of luck in their onward journey.”

Advisors

Morgan Stanley & Co. Global plc is serving as monetary marketing consultant to OCI at the transaction. Cleary Gottlieb Steen & Hamilton LLP is appearing as its criminal marketing consultant.

About Iowa Fertilizer Corporate 

Iowa Fertilizer Corporate is an entirely owned oblique subsidiary of OCI, situated in the United States Midwest corn belt and probably the most youngest, maximum leading edge nitrogen belongings globally. OCI introduced IFCO to the marketplace in early 2013 as a greenfield venture. The power was once probably the most biggest non-public sector development tasks in Iowa’s historical past and the primary world-scale, greenfield nitrogen fertilizer plant inbuilt the US in additional than 25 years. IFCO supplies farmers within the Midwest and round the US a strong fine quality and home supply of fertilizer. IFCO additionally produces diesel exhaust fluid, which is helping let fall damaging automobile exhaust emissions. IFCO having the possibility to put together 3.5 million metric heaps of nitrogen fertilizers and diesel exhaust fluid once a year.

About OCI International

We’re a world chief in nitrogen, methanol, and hydrogen, riding ahead the decarbonization of the energy-intensive industries that situation, feed and gas the sector. OCI’s manufacturing capability spans 4 continents and accommodates roughly 17.2 million metric heaps in step with while of hydrogen-based merchandise together with nitrogen fertilizers, methanol, biofuels, diesel exhaust fluid and melamine. OCI has greater than 4,000 workers, is headquartered in the Netherlands and indexed on Euronext in Amsterdam.

Be informed extra about OCI at www.oci-global.com. You’ll additionally practice OCI on LinkedIn.

SOURCE OCI International



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