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Itafos to Acquire Conda Phosphate Operations from Agrium for USD 110m.

M2 EQUITYBITES-November 13, 2017-Itafos to Acquire Conda Phosphate Operations from Agrium for USD 110m

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13 November 2017 - Caymen Islands-based phosphate producer Itafos (TSX Venture: IFOS) has agreed to acquire Idaho, US-based Conda Phosphate Operations from Canada-based agricultural products and services provider Agrium Inc. (TSX: AGU) (NYSE: AGU) for USD 100m, the company said.

The transaction is conducted on a cash and debt-free basis. The transaction is expected to close by year end 2017, subject to customary closing conditions, including approval of the Federal Trade Commission and approval of the TSXV.

The transaction agreement includes long-term strategic supply and off-take agreements.

Under the terms of the definitive arm's length purchase agreement, Agrium will supply 100% of the ammonia requirements of Conda Phosphate Operations and purchase 100% of MAP product produced, with pricing formulas for both tied to benchmark phosphate fertiliser prices.

Itafos said it expands its operating presence to North America and further diversifies product and geographic mix through the acquisition.

The company is an integrated producer of phosphate fertilisers and related products with a portfolio of long-term strategic assets.

Itafos owns the Itafos Arraias 500,000 ton per year single super phosphate operations, which consists of an integrated fertiliser production facility comprised of a phosphate mine, a mill, a beneficiation plant, a sulphuric acid plant, an SSP plant and a granulation plant and related infrastructure located in central Brazil.

Agrium is a producer and distributor of agricultural products and services in North America, South America, Australia and Egypt through its agricultural retail-distribution and wholesale nutrient businesses.

Conda Phosphate Operations is an integrated producer of phosphate fertilisers and specialty products, which includes phosphate production facilities and adjacent phosphate mineral rights, produces approximately 540,000 metric tons per year of mono-ammonium phosphate, super phosphoric acid, merchant grade phosphoric acid and specialty products and serves the North American fertiliser market.

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Date:Nov 13, 2017
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