EuroChem to purchase K+S Nitrogen
EuroChem, a provider of nitrogen and phosphate fertilisers, has entered into a definitive agreement to purchase K+S Nitrogen for €140m.
K+S Nitrogen, a subsidiary of the K+S Group, supplies nitrogenous fertilisers to the agriculture industry and private consumers.
The sale is part of K+S's strategy to grow its businesses in potash, magnesium and salt product segments, as well as focus on management resources and financial means.
Norbert Steiner, K+S Aktiengesellschaft chairman, said: "Against the backdrop of the recently concluded sale of the fertiliser activities of BASF in Antwerp, the sale to EuroChem is the best option from the perspective of K+S, but also of the employees of K+S Nitrogen."
EuroChem CEO Dmitry Strezhnev said acquisition of K+S Nitrogen is a natural extension to the company's recently acquired EuroChem Antwerpen operations.
"This acquisition provides us with a world-renowned platform while further securing our competitiveness in key markets worldwide," Strezhnev added.
K+S Nitrogen said depending on the net earnings generated by the time the transaction is closed, together with other effects, the sales will generate a book profit of around €70m to €80m.
The transaction, which is expected to close at the end of Q2 2012, is subject to a number of factors, including approval by the EU antitrust authority.