Fertilizer giant Agrium’s planned exit from the purchase-for-resale business now includes a US$50 million deal for two of its U.S. fertilizer facilities.
The Calgary company announced Tuesday it’s reached a deal to sell its Illinois anhydrous ammonia storage and distribution terminals at Niota and Meredosia — about 150 km west of Peoria and 95 km west of Springfield respectively — to U.S. chemical marketing firm Trammo.
The Niota plant, built in 1967 by what was then Apple River Chemical Co., and the Meredosia plant, built in 1966 by Mobil Oil, both came to Agrium through its 2006 takeover of fertilizer and chemical firm Royster Clark.
Agrium said Tuesday the sale stems from its recent portfolio review, which in turn led to its decision to discontinue its North American purchase-for-resale business.
The company said it expects the deal to close in the first quarter of fiscal 2015, pending the usual closing conditions and regulatory clearances.
Agrium CEO Chuck Magro said the company is “very pleased with the value received” for the two facilities, describing the sale as “another step towards simplifying our portfolio and focusing on our core businesses.”
Privately-held Trammo, which operated under the name Transammonia until 2013, already operates its own anhydrous ammonia storage terminal at Meredosia.
Trammo was set up in 1965 as an ammonia trading firm and has since diversified into other fertilizers, chemicals and commodities. — AGCanada.com Network