ARCADIAN ACQUIRES NITROGEN FERTILIZER BUSINESS OF BP CHEMICALS INC.
MEMPHIS, Tenn., May 11 /PRNewswire/ -- Arcadian Partners, L.P. (NYSE: UAN), announced today that it has acquired from BP Chemicals Inc. (BPC) its nitrogen fertilizer business and related assets, including a multi-plant production facility in Lima, Ohio, for approximately $100 million in cash. Arcadian and BPC previously signed a letter of intent with respect to the acquisition on Feb. 8, 1993. Doug Campbell, the president and chief executive officer of Arcadian Corporation, stated: "The acquisition of the nitrogen fertilizer business of BPC is a geographic extension of Arcadian's strategic production and marketing plans. The Lima facility is an efficient producer of nitrogen fertilizer products. We also believe that this acquisition will improve Arcadian's sales to customers in the high consumption U.S. cornbelt area and will strengthen Arcadian's geographic positioning in the Midwest. The Lima Plant facility includes an ammonia plant, multiple urea production plants, a nitric acid plant, nitrogen solution blending facilities, and associated storage and off-site facilities. The ammonia plant was completed in 1971. The urea production plant underwent a major expansion and modernization in 1982, and the nitric acid plant was completed in 1992. The annual production capacities of the facilities comprising the Lima Plant, in thousands of short tons per year, are as follows: ammonia-530, urea synthesis-408, urea (in prill form)-272, urea (in granular form)-145, nitric acid-92, ammonium nitrate-78, nitrogen solutions-180, and carbon dioxide (in liquid form)-170. These maximum capacities are based upon individual plant operations which may not be able to achieve these production levels during normal operation, particularly if multiple facilities are being used simultaneously. BPC will operate the Lima facility on behalf of Arcadian pursuant to a three-year contract providing for the reimbursement of expenses incurred by BPC in performing such operating services. Arcadian effected the acquisition through Arcadian Ohio, L.P., a limited partnership in which Arcadian Corporation is the general partner and Arcadian Partners is the limited partner. Arcadian Partners, L.P., is a recognized leader in the manufacturing, marketing and distribution of nitrogen fertilizer products. Arcadian Corporation is the general partner of Arcadian Partners, L.P., and Arcadian Ohio, L.P. -0- 5/11/93 /CONTACT: Gwaine W. Ton, Director of Investor Relations and Financial Services, Arcadian Partners, L.P., 901-758-5366/ (UAN)
CO: Arcadian Partners, L.P.; BP Chemicals Inc.; Arcadian Corporation ST: Tennessee, Ohio IN: CHM AGRI SU: TNM
CM -- CH011 -- 7227 05/11/93 16:28 EDT
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|Date:||May 11, 1993|
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