CF Industries announces purchase of Waggaman ammonia facility for $1.67 billion

Staff Report

CF Industries Holdings Inc., which operates a facility on the west bank of Ascension Parish near Donaldsonville, announced it has signed a purchase agreement with Incitec Pivot Limited for an ammonia production complex located in Waggaman.

According to a news release, the facility has a nameplate capacity of 880,000 tons of ammonia annually.

Under the terms of the deal, CF Industries will purchase the plant and related assets for $1.675 billion.

The CF Industries Donaldsonville Nitrogen Complex is the world’s largest nitrogen facility, according to the company. It is located on 1,400 acres along the west bank of the Mississippi River in Ascension Parish, near the Donaldsonville city limits.

The companies will allocate about $425 million of the purchase price to a long-term ammonia offtake agreement under which CF Industries will supply up to 200,000 tons of ammonia a year to IPL’s Dyno Nobel subsidiary.

CF Industries expects to fund the remaining $1.25 billion of the purchase price with cash on hand.

Tony Will, president and chief executive officer of CF Industries, stated in the release that the Waggaman facility will fit seamlessly into the company's network given its proximity and pipeline connection to the Donaldsonville complex.

The transaction has been unanimously approved by the boards of directors of both companies and is subject to receipt of certain regulatory approvals and other customary closing conditions.

Goldman Sachs & Co. LLC is serving as the financial advisor to CF Industries on the transaction. Skadden, Arps, Slate, Meagher & Flom LLP is acting as its legal advisor.

CF Industries' Donaldsonville complex is the world’s largest ammonia production facility, according to the company. The site produces around 4.3 million tons of ammonia on average per year, serving customers across the globe.