K+S Aktiengesellschaft has signed an agreement with EuroChem regarding the sale of K+S Nitrogen (KSN), a leading suppliers of nitrogenous fertilizers.
The transaction, with an enterprise value of EUR 140 million for KSN, is likely to be closed at the end of the second quarter of 2012. The effective economic date of the transfer is 31 March 2012. The sale is subject to a number of factors, including approval by the EU antitrust authority.
For K+S, the sale will generate a book profit of around EUR 70-80 million, depending on the net earnings of KSN generated by the time the transaction is closed together with other effects. From now on, KSN will be stated as a “discontinued operation”. In financial year 2011, KSN generated revenues of EUR 1,156.8 million and operating earnings (EBIT I) of EUR 69.4 million.
“We are pleased to have found a well-suited new owner for K+S Nitrogen in EuroChem. Against the backdrop of the recent concluded sale of the fertilizer 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”, says Norbert Steiner, Chairman of the Board of Executive Directors of K+S Aktiengesellschaft. “I would like to express my particular thanks to the employees of K+S Nitrogen for their extraordinary commitment in recent years,” Steiner continues.
EuroChem CEO Dmitry Strezhnev commented, “K+S Nitrogen is a natural extension to our recently acquired EuroChem Antwerpen operations. This acquisition provides us with a world-renowned platform while further securing our competitiveness in key markets worldwide. We welcome the highly skilled staff of K+S Nitrogen and our clients and partners may rest assured that the high level of service they have grown accustomed to with K+S Nitrogen will be maintained.”
Goldman Sachs acted as financial advisors to K+S, while Sberbank advised EuroChem. CMS Hasche Sigle and HengelerMueller acted as legal advisors on the transaction to K+S and EuroChem, respectively.
About K+S Nitrogen
K+S Nitrogen markets nitrogenous fertilizers with a focus on major customers in agriculture and special crops such as fruits, vegetables and grapes. In addition to the fertilizers produced by EuroChem Antwerpen and delivered by BASF for it, K+S Nitrogen also markets the goods of other reputable European fertilizer producers. The company is based in Mannheim, Germany, and employs 180 people worldwide. More information is available at www.ks-nitrogen.com.
EuroChem is a leading global agrochemical company, producing primarily nitrogen and phosphate fertilizers, as well as certain organic synthesis products and iron ore. The Group is vertically integrated with activities spanning from mining and natural gas extraction to production, logistics, and distribution. EuroChem is currently developing two sizeable potash deposits in Russia with the Gremyachinskoe (4.6 mtpa) and Verkhnekamskoe (3.4 mtpa) greenfield projects. Please visit www.eurochem.ru for further information.
The K+S Group is one of the world's leading suppliers of standard and speciality fertilizers. In the salt business, K+S is the world’s leading producer with sites in Europe as well as North and South America. K+S offers a comprehensive range of goods and services for agriculture, industry, and private consumers, which provides growth opportunities in virtually every sphere of daily life. The K+S Group employs more than 14,000 people. The K+S share – the commodities stock on the German DAX index – is listed on all German stock exchanges (ISIN: DE000KSAG888, symbol: SDF). More information about K+S can be found at www.k-plus-s.com.
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