WEVER, IOWA – A huge Iowa fertilizer plant has been sold to Koch Ag & Energy Solutions for billions of dollars.
OCI Global, a leading global producer and distributor of hydrogen products announced that it has reached an agreement for the sale of 100% of its indirect interest in its large-scale US greenfield nitrogen fertilizer facility (pictured at top under construction years ago) Iowa Fertilizer Company LLC, located in Wever, Iowa, to Koch Ag & Energy Solutions for a total consideration of USD 3.6 billion on a tax free basis, subject to a customary cash, debt and normalized level of working capital adjustment.
Consummation of the transaction remains subject to receipt of certain US antitrust approval and other customary closing conditions. The transaction does not require OCI’s shareholders to vote on approval. The transaction is expected to close in 2024.
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.
Back in 2017, Iowa Fertilizer Company (IFCo) and its parent company, OCI, announced the official start of production at its plant in Wever in southeast Iowa. Governor Terry Branstad, Lt. Gov. Kim Reynolds, the Lee County Board of Supervisors and others joined OCI in an event to inaugurate one of the largest private sector construction projects in Iowa’s history and the first world-scale, greenfield nitrogen fertilizer facility built in the United States in more than 25 years.
