Incitec Pivot Fertilisers (IPF) on Aug. 24 announced that it has reached an agreement with Yara Australia to acquire the Yara Nipro liquid fertilizer business in Australia. IPF said its investment would be A$20 million.
The Yara Nipro business is complementary to IPF’s border business. The acquisition of Yara Nipro operations in Moree and Whitton in New South Wales and Boundary Bend in Victoria will provide excellent liquid fertilizer options and enhanced security of supply across Australia’s East Coast according to Jeanne Johns, Managing Director and CEO of Incitec Pivot Ltd.
IPF CFO Chris Opperman said the acquisition is expected to be EPS accretive in the first year, with additional synergies to enhance the returns further. He noted that it comes as IPL advances its proposed separation plans, which would make IPF a standalone business.
“The addition of Yara Nipro to IPF is entirely in line with plans to expand the business and seize opportunities that will see it thrive following the proposed transaction,” said Johns.
The deal is still subject to clearance by the Australian Competition and Consumer Commission.