Rentech Nitrogen acquire Agrifos $158 million

Rentech Nitrogen to acquire Agrifos for $158 million

5:50 AM, 2nd November 2012
Rentech Nitrogen to acquire Agrifos for $158 million

LOS ANGELES, US: Rentech Nitrogen Partners, majority-owned subsidiary of Rentech Inc, has entered into a definitive agreement with Agrifos Holdings Inc to purchase all of the membership interests of Agrifos LLC, for an initial purchase price of $158 million. The acquisition is expected to be accretive to cash distributions per unit paid by Rentech Nitrogen to its unit holders beginning in 2013.

In conjunction with the closing of this transaction, Rentech Nitrogen has secured commitments from its existing and new lenders to amend its existing debt facility, and expand its borrowing base from $135 million to $300 million. The debt facility will continue to be guaranteed by Rentech Nitrogen. The transaction, which is subject to customary closing conditions, is anticipated to close within one week of the date of this announcement.

“Agrifos’ business is expected to provide incremental cash flow and diversifies the products, markets, location, and raw materials of our existing natural gas-based nitrogen fertilizer plant in East Dubuque, Illinois,” said D Hunt Ramsbottom, CEO, Rentech.

“Not only do we expect this business to be accretive to cash available for distribution beginning in 2013, but the facility comes with several growth opportunities, the first of which we have included in our financing package for this transaction. This growth at the Pasadena plant would add to the growth in cash flow that we expect from the expansion projects currently underway at Rentech Nitrogen’s existing fertilizer plant,” added Ramsbottom.

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