CF Industries Holdings, Inc. CF recently declared that it has completed the acquisition of the remaining 50% equity interest in GrowHow UK Limited from Yara International ASA YARIY for $580 million in cash. UK-based fertilizer manufacturer, GrowHow owns and operates nitrogen production facilities in Ince and Billingham, UK.
CF industries’ shares rose around 1.3% in the trading session on Jul 31, closing the day at $59.20.
According to Tony Will, CF Industries’ President and CEO, the company is looking forward to working with new employees as well as the addition of the production facilities of Ince and Billingham to its own nitrogen system.
CF industries had acquired a 50% interest in GrowHow in 2010 after its purchase of Terra Industries. Last month, the company announced that it would acquire the remaining 50% equity interest in GrowHow. The GrowHow business will be consolidated into CF Industries with a cash- and debt-free balance sheet.
This acquisition has boosted CF Industries’ annual marketable nitrogen volume by 0.45 million short tons of gross ammonia, 0.6 million short tons of ammonium nitrate and 0.2 million short tons of NPK compounds. The buyout will further strengthen CF Industries’ track record of returning value to shareholders via effective capital deployment.
Prior to the transaction closure, results of GrowHow were incorporated in CF Industries’ financial statement under the section, “Equity in Earnings of Non-Operating Affiliates – Net of Taxes”. GrowHow’s results will now be shifted to CF Industries’ consolidated results section.
CF Industries currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the basic materials space include CVR Partners, LP UAN and Innospec Inc. IOSP, both sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment