By Dominic Chopping
Norway's Yara International ASA (YAR.OS) said Wednesday it has
agreed to sell its 50% stake in U.K. fertilizer manufacturer
GrowHow UK Group to CF Industries (CF), in a deal worth $648
million.
Yara and CF Industries have each owned 50% of GrowHow since 2007
and 2010 respectively, and as part of a pre-agreed deal the
companies had each been bidding for the other's stake.
"The final bid from CF represents an attractive value to Yara,"
said Chief Executive Torgeir Kvidal. "Yara's growth strategy
remains on track, as we work hard both to deliver already committed
projects and to develop our pipeline of new opportunities."
The total enterprise value of $648 million includes $68 million
related to an unfunded pension liability, it added.
GrowHow primarily serves the U.K. fertilizer market and in 2014
delivered earnings before interest, taxes, depreciation and
amortization of $156 million. The sale is expected to generate an
after-tax Ebitda gain for Yara of 3 billion Norwegian kroner ($380
million).
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@WSJNordics
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