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."
Ahmed El Hoshy, CEO of OCI said: "We are exceptionally proud of OCI and the IFCO operating team's remarkable achievements in converting a cornfield into a world-class global nitrogen facility and in revitalizing a core industry in the United States. KAES today is opportunely positioned both strategically and geographically to leverage and diversify its extensive platform, and to create significant opportunities to drive the facility's future growth. We have been impressed by the entire KAES team throughout this process and wish them the best of luck in their onward journey."
Advisors
Morgan Stanley & Co. International plc is serving as financial advisor to OCI on the transaction. Cleary Gottlieb Steen & Hamilton LLP is acting as its legal advisor.
About Iowa Fertilizer Company
Iowa Fertilizer Company is a wholly owned indirect subsidiary of OCI, located in the US Midwest corn belt and one of the youngest, most innovative nitrogen assets globally. OCI brought IFCO to the market in early 2013 as a greenfield project. The facility was one of the largest private sector construction projects in Iowa's history and the first world-scale, greenfield nitrogen fertilizer plant built in the United States in more than 25 years. IFCO provides farmers in the Midwest and around the United States a stable high-quality and domestic source of fertilizer. IFCO also produces diesel exhaust fluid, which helps reduce harmful vehicle exhaust emissions. IFCO has the capacity to produce 3.5 million metric tons of nitrogen fertilizers and diesel exhaust fluid annually.
About OCI Global
We are a global leader in nitrogen, methanol, and hydrogen, driving forward the decarbonization of the energy-intensive industries that shape, feed and fuel the world. OCI's production capacity spans four continents and comprises approximately 17.2 million metric tons per year of hydrogen-based products including nitrogen fertilizers, methanol, biofuels, diesel exhaust fluid and melamine. OCI has more than 4,000 employees, is headquartered in the Netherlands and listed on Euronext in Amsterdam.
Learn more about OCI at www.oci-global.com. You can also follow OCI on LinkedIn.
