In This Article:
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OCI Global ("OCI") announces successful completion of the sale of 100% of its equity interests in Iowa Fertilizer Company LLC ("IFCO") to Koch Ag & Energy Solutions ("KAES")
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The transaction was valued at USD 3.6 billion on a cash free debt free basis and followed a competitive process
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The closing marks a significant milestone in OCI's strategy to unlock value for shareholders
AMSTERDAM, Aug. 29, 2024 /PRNewswire/ -- OCI Global (Euronext: OCI), a leading global producer and distributor of hydrogen products is pleased to announce the successful closing of the divestment of 100% of its indirect interest in its large-scale US greenfield nitrogen fertilizer facility Iowa Fertilizer Company LLC, in Wever, Iowa to Koch Ag & Energy Solutions, signed on December 18, 2023, following the required regulatory and shareholder approvals.
The closing marks a significant milestone in OCI's ongoing strategic value creation journey. The expected cumulative crystallization of approximately USD 9.5 billion gross cash proceeds from the recently announced sales of Fertiglobe, IFCO and OCI Clean Ammonia affords OCI significant flexibility to deliver on its capital allocation priorities, including deleveraging at a gross level as well as returning a meaningful quantum of capital to shareholders.
IFCO was the first greenfield nitrogen fertilizer plant built in the United States in over 25 years, and the largest private construction project in Iowa's history, adding more than 3,500 jobs during the construction period. Since commissioning in April 2017, the facility has revitalized a core industry in the United States reflecting OCI's continued investment in the plant's ongoing development, and in the surrounding region's distribution and logistics infrastructure to support the Midwest's agriculture industry. OCI is confident that under KAES's stewardship, IFCO will be well positioned for its next phase of growth.
For more information on the transaction, reference is made to the press release published on December 18, 2023.
Commenting on the announcement, Nassef Sawiris, Executive Chairman of OCI said: "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."