CF Industries Completes Acquisition of Remaining 50 Percent Interest in GrowHow from Yara for $580 million
July 31 2015 - 1:04PM
Business Wire
CF Industries Holdings, Inc. (NYSE: CF) announced today that it
has closed the acquisition of the outstanding interests it did not
already own in GrowHow UK Limited (GrowHow) for total cash
consideration of $580 million. GrowHow owns and operates nitrogen
production facilities in Ince and Billingham, U.K.
“We are pleased to welcome 550 new employees from GrowHow to CF
Industries and to add the production facilities in Ince and
Billingham to our system of nitrogen complexes,” said Tony Will,
president and chief executive officer, CF Industries Holdings, Inc.
“Our U.K. operations are well-positioned in an import dependent
region to serve our customers’ needs and to create value for
shareholders. We look forward to working with our new colleagues to
ensure our products remain the first choice for British
farmers.”
This acquisition has increased CF Industries’ annual marketable
nitrogen volume by approximately 450,000 short tons of gross
ammonia; 600,000 short tons of ammonium nitrate; and 200,000 short
tons of NPK compounds. Prior to the close of the transaction,
GrowHow’s results were included in CF Industries’ financial
statements under Equity in Earnings of Non-Operating Affiliates –
Net of Taxes.
About CF Industries Holdings,
Inc.
CF Industries Holdings, Inc., headquartered in Deerfield,
Illinois, through its subsidiaries is a global leader in the
manufacturing and distribution of nitrogen products, serving both
agricultural and industrial customers. CF Industries operates
world-class nitrogen manufacturing complexes in the central United
States, Canada, and the United Kingdom, and distributes plant
nutrients through a system of terminals, warehouses, and associated
transportation equipment located primarily in the Midwestern United
States. The company also owns a 50 percent interest in an ammonia
facility in The Republic of Trinidad and Tobago. CF Industries
routinely posts investor announcements and additional information
on the company’s website at www.cfindustries.com and encourages
those interested in the company to check there frequently.
Safe Harbor Statement
All statements in this communication, other than those relating
to historical facts, are “forward-looking statements.” These
forward-looking statements are not guarantees of future performance
and are subject to a number of assumptions, risks and
uncertainties, many of which are beyond our control, which could
cause actual results to differ materially from such statements.
These statements include, but are not limited to, statements about
future strategic plans; and statements about future financial and
operating results. Important factors that could cause actual
results to differ materially from our expectations include, among
others: the volatility of natural gas prices in North America and
the United Kingdom; the cyclical nature of our business and the
agricultural sector; the global commodity nature of our fertilizer
products, the impact of global supply and demand on our selling
prices, and the intense global competition from other fertilizer
producers; conditions in the U.S. and U.K. agricultural industry;
difficulties in securing the supply and delivery of raw materials,
increases in their costs or delays or interruptions in their
delivery; reliance on third party providers of transportation
services and equipment; the significant risks and hazards involved
in producing and handling our products against which we may not be
fully insured; risks associated with cyber security; weather
conditions; our ability to complete our production capacity
expansion projects on schedule as planned and on budget or at all;
an inability to achieve, or delay in achieving, the expected
benefits of the GrowHow transaction as contemplated; risks
associated with other expansions of our business, including
unanticipated adverse consequences and the significant resources
that could be required; potential liabilities and expenditures
related to environmental and health and safety laws and
regulations; our potential inability to obtain or maintain required
permits and governmental approvals or to meet financial assurance
requirements from governmental authorities; future regulatory
restrictions and requirements related to greenhouse gas emissions;
the seasonality of the fertilizer business; the impact of changing
market conditions on our forward sales programs; risks involving
derivatives and the effectiveness of our risk measurement and
hedging activities; our reliance on a limited number of key
facilities; risks associated with joint ventures; acts of terrorism
and regulations to combat terrorism; risks associated with
international operations; losses on our investments in securities;
deterioration of global market and economic conditions; and our
ability to manage our indebtedness. More detailed information about
factors that may affect our performance may be found in our filings
with the Securities and Exchange Commission, including our most
recent periodic reports filed on Form 10-K and Form 10-Q, which are
available in the Investor Relations section of the CF Industries
website. Forward-looking statements are given only as of the date
of this release and we disclaim any obligation to update or revise
the forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
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version on businesswire.com: http://www.businesswire.com/news/home/20150731005674/en/
CF Industries Holdings, Inc.Dan Swenson,
847-405-2515Treasurerdswenson@cfindustries.comorChris Close,
847-405-2542Director, Corporate
Communicationscclose@cfindustries.com
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