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Itafos to acquire Conda Phosphate Operations

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World Fertilizer,

Itafos has announced that it has signed a definitive arm’s length purchase agreement with Agrium Inc. to acquire Agrium’s Conda Phosphate Operations – an integrated producer of phosphate fertilizers and specialty products.

This acquisition will be executed for total cash consideration of approximately US$100 million (which includes inventory) on a cash and debt free basis.

Conda Phosphate Operations is located in Conda, Idaho, US, and includes phosphate production facilities and adjacent phosphate mineral rights. It produces approximately 540 000 tpy of mono-ammonium phosphate (MAP), super phosphoric acid (SPA), merchant grade phosphoric acid (MGA) and specialty products (phosphate solutions). The company serves the North American fertilizer market.

Itafos claims that the transaction includes long-term strategic supply and offtake agreements. Under the terms of these agreements, Agrium will supply 100% of the ammonia requirements of Conda Phosphate Operations and will purchase 100% of MAP product produced. Pricing formulas for both will reportedly be tied to benchmark phosphate fertilizer prices.

Brian Zatarain, the Chief Executive Officer of Itafos, said: “This transaction is transformative for Itafos and vastly accelerates our strategic objective of becoming a leading global player in the phosphate fertilizer industry.

“Conda Phosphate Operations further diversifies our global position of long-term strategic phosphate assets with an operating business in North America that has a long and successful track record of safe, responsible, reliable, continuous and financially stable operations.”

In the statement, Itafos claims that the transaction is expected to close by year-end 2017, subject to customary closing conditions, including approval by the Federal Trade Commission as well as the TSXV.

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Fertilizer project news Agrium news