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Agrium seeks sale of FTC-related outlets to Helena; excludes Virginia outlet

News

The Federal Trade Commission has received a petition from Agrium Inc. requesting approval of a proposed divestiture related to Agrium’s recent acquisition of UAP Holding Corp. Under the terms of the FTC consent order arising from the FTC’s challenge to the transaction, Agrium is required to sell five UAP farm stores located in Michigan, and two Agrium stores located in Maryland and Virginia, to an FTC-approved buyer within 180 days of acquiring UAP.

The divestitures are intended to remedy competitive concerns raised by the acquisition in the market for the retail sale of bulk fertilizer and related services by farm stores located in six geographic markets in or near the towns of Croswell, Richmond, Imlay City, Vestaburg, and Standish, Michigan; and Pocomoke City/Girdletree, Maryland. Through its petition, Agrium has requested FTC approval to divest the Farm Supply Assets to Helena Chemical Co. of Collierville, Tenn. Helena, a unit of Marubeni Corp., is not publicly listed. To date, the companies are keeping further terms of the deal confidential. Agrium said the amount was not material.

The FTC’s order requires that Agrium’s farm store located in Keller, Va., be sold with Agrium’s Snow Hill, Md., store, because the Keller location supplies the Snow Hill store in the relevant Pocomoke/Girdletree, Md. market with essential custom-blended fertilizer. In its petition, Agrium says that the order also provides that the Farm Supply Assets to be divested need not include assets “not needed by an acquirer” if the FTC approves the divestiture without the assets. In the divestiture proposed by Agrium, Helena would acquire all of the Farm Supply Assets excluding Agrium’s Keller store. Agrium contends Helena does not need the Keller location because Helena already has a farm supply store located less than eight miles from Keller in Tasley, Va. Agrium asserts the Tasley location can supply Snow Hill, Md.

Agrium further contends that requiring it to divest the Keller, Va., store to Helena “would reduce competition between Helena and Agrium in the Tasley/Keller, Va. area.”

The FTC is accepting public comments on the proposed divestiture though Sept. 22, 2008, after which it will decide whether to approve it. Comments should be sent to: FTC, Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. (Docket No. C-4219; the staff contact is Elizabeth Piotrowski, Bureau of Competition, 202-326-2623.)

Helena denies N.M. charges, asks for hearing

News, Southern Plains, Southwest

Helena Chemical Co., Memphis, Tenn., has delivered a sharp rebuttal to charges by the state that the company is guilty of a series of air quality violations and of displaying an attitude of laxness toward complying with environmental regulations at its fertilizer warehouse in Mesquite, N.M. Helena was responding to the July 30 issuance by the New Mexico Environmental Dept. of a compliance order asserting 11 violations and assessing a fine of $279,000 (GM Aug. 11, p. 11). Environmental Secretary Ron Curry labeled Helena a problematic company and said the state would not tolerate its “lax air monitoring methods that put residents at risk.”

Not the case, reacted Helena Director of Regulatory Compliance and Engineering Ed Brister, who insisted that despite these charges his company is making a serious effort to resolve these differences. Brister claimed that the Mesquite plant is complying with the state air quality permit issued in 2005 and requested that the state reconsider its compliance order on the terms of that permit.

In the meantime, he said Helena wants a public hearing to be held on the state’s compliance order. “We are asking NMED to re-evaluate the allegations of violations and recognize our ongoing attempts to address any concerns from the state, above and beyond what is required,” Brister stated. “Our Mesquite warehouse was granted a permit in its current state as an enclosed facility in November of 2005, after multiple site investigations and a series of independent air quality studies,” he said. “The permit application process was exhaustive and we are just asking that the rules and definitions established remain the same.

“In its own reports of seven inspections between March and June 2007, NMED’s inspector noted only one instance of dust emissions from any of the paved roads on our property, and there was not a single allegation of any emissions of fertilizer or other Helena products crossing our property line.” The company noted ongoing efforts to work with NMED officials to resolve matters cited in another notice of violation issued on Nov, 14, 2007. Prior to that the company had been in frequent contact with NMED and had been conducting tests and performing work to comply with NMED’s direction. Most importantly, Brister added, the company has conducted extensive air-quality testing that demonstrates the facility’s emissions are very low and do not impact or harm the area’s air quality in any way.

H.J. Baker celebrates Stockton grand opening

News Briefs, Northeast

Westport, Conn.-H.J. Baker & Bro. Inc. and its wholly-owned subsidiary, Tiger-Sul Products, celebrated the grand opening of the company’s state-of-the-art production facility in Stockton, Calif., on Sept. 4. The plant is the company’s third production facility in North America, and will allow H.J. Baker to increase its manufacturing capability for pastillated sulfur-based products for agriculture and other applications, including Tiger 90CRTM sulfur and Tiger Micronutrients TM fertilizers. Christopher Smith, president and CEO of H.J. Baker, said that the Stockton site would allow the companies to continue to produce top quality sulfur-based fertilizers for customers in the region and reach international customers efficiently, “while continuing to provide the exceptional service and products our customers depend on.” Smith, who was joined at the ribbon cutting by board chairman Matthew Smith and the company’s president of new business development, David Smith, touted the Tiger-Sul pastillation process for its environmentally friendly slow-release qualities, and for its ideal fit for California soils. The ground-breaking for the expansion at Stockton was held on Jan. 24 of this year (GM Feb. 4, p. 15). H.J. Baker’s other North American manufacturing sites are located at Atmore, Ala., and Calgary, Alberta. The company will celebrate the grand opening of another sulfur pastillation facility in September in Umbogintwini, South Africa, with its partner, Chemical Initiatives. Jeff Ivan, manager of marketing and business development for Tiger-Sul Products, said the company licensed its technology to Chemical Initiatives so the two companies “can work together to supply the African continent with sulfur-based fertilizers to address the sulfur deficit in Africa.”

Minor leak reported at Terra Courtright plant

News Briefs, Western Cornbelt

Sioux City-There was an anhydrous ammonia leak at Terra Industries Inc.’s Courtright, Ont., nitrogen complex Aug. 28. “The ammonia discharge at Courtright was relatively small, a few hundred pounds, and it is being brought back on-line,” said a Terra spokesman on Sept. 2. The leak lasted about 20 minutes, according to The Sarnia Observer, which said residents within a two kilometer radius were told to stay indoors and some 150 employees took shelter. No injuries were reported, and an all-clear was sounded some 30 minutes after the incident occurred.

Mosaic contributes $200,000 for hurricane relief

News Briefs, Northern Plains

Plymouth, Minn.-The Mosaic Co. reports that it will contribute $200,000 to the American Red Cross and local disaster relief organizations designated by Florida Governor Charlie Crist and Louisiana Governor Bobby Jindal for hurricane relief efforts. Mosaic also said it will match employee contributions to the Red Cross. The donation follows a $50,000 contribution the company made in August to the Red Cross’s Tampa Bay region, which covers eight counties in central and southwest Florida. “Hurricane Gustav hit areas of Louisiana particularly hard, including communities where our employees and their families live and work,” said Jim Prokopanko, Mosaic’s president and CEO. “Our contribution is intended to help provide direct and rapid assistance to the victims who have been impacted most severely.” Mosaic employs approximately 3,000 in Florida and 280 in Louisiana.

Fertilizer takes backseat to tailgaters at Walmart

News Briefs, South Central

Bentonville, Ark.-Walmart customers will have to look someplace else in the stores for their fertilizer and other such needs because more than 1,700 of the retailer giant’s garden centers across the country are being transformed into Game Time Headquarters, stocked with items to appeal to tailgaters. Walmart officials indicated the marketing change was being made to make better use of the space during a time when gardening sales slack off and interest in the local football teams reaches a peak. They point to tailgating.com, which reports 42 percent of tailgaters spend more than $500 each season on food and supplies. So, beginning immediately, these areas will become Game Time Headquarters, where shelves will be stocked with team merchandise and décor, as well as game-time snacks and beverages. Some observers, however, caution that Walmart risks confusing shoppers and alienating garden center shoppers, even though these items will still be available during the promotion, which runs through Sept. 30.

ICL announces record share repurchase program

Israel, News Briefs

Tel Aviv-Israel Chemicals Ltd. reports that its board of directors has approved its intention to commence a stock repurchase program of up to five percent of its outstanding ordinary shares over a ten-month period through June 30, 2009. The share purchase program, which could amount to NIS 3.5 billion ($971 million) according to the Sept. 3 closing closing share price, is the largest ever initiated by an Israeli company. The buyback will involve the purchase of ICL’s ordinary shares in open-market and off-market transactions by ICL or its subsidiaries. ICL said the move is due to its positive financial condition and its significant cash flow. The company recently announced record financial results for the first half of 2008, including net profit of $1.05 billion on $3.6 billion in revenues and 37 percent operating margins. Cash flow generated from operating activities for the second quarter reached a record $473.5 million. The repurchase will be made with funds eligible for distribution as dividends in accordance with the Israel Companies Law, 1999. Together with the company’s recently announced $300 million dividend, to be paid Sept. 23, and other dividends totaling $288 million distributed earlier in 2008, the share repurchase program underscores the board’s faith in the company.

Chemtrade, USW give update on explosion

Canada, Eastern Canada, News Briefs

Toronto-Chemtrade Logistics Income Fund has given an update on the situation at its Beaumont, Texas, sulfuric acid plant following an explosion in the plant’s furnace on Aug. 21 (GM Aug 25, p. 12) that injured two employees. Chemtrade said an investigation is underway, and that while it is too early to say how long the plant will remain shut down, it will probably be down for at least a month. Chemtrade said it carries property and business interruption insurance, and that the amounts of any claims cannot be determined until the investigation is complete and repairs are made so the plant can be safely restarted. Chemtrade said it is working with customers to assist them in obtaining alternative sources of product and logistics until it can resume production. In the meantime, the United Steelworkers Union, which represents workers at the plant, identified the two injured union members as Gene Gremillion and Robert Patilla. Gremillion. who sustained second-degree burns on his face, arms, and legs, has been released from the hospital. Patilla has two broken legs and third-degree burns, and remains hospitalized in critical but stable condition.

Itronics makes first sale of deer repellant

News Briefs, Southwest

Reno-Itronics Metallurgical Inc. has shipped its first packages of GOLD’n GRO Guardian Deer Repellent, according to Itronics Inc., its parent company. The company has completed registration of GOLD’n GRO Guardian Deer Repellent in Nevada, Utah, Colorado, Maryland, Massachusetts, New Jersey, and Rhode Island. Registration is pending in Delaware, Pennsylvania, New York, and Alabama. The shipments are being made to qualified landscape maintenance businesses in several of the states that are licensed for spraying pesticides. These new customers will now evaluate the GOLD’n GRO Guardian Deer Repellent for use in their landscape spray programs. “Getting the GOLD’n GRO Guardian Deer Repellent sales started is a major milestone achievement,” said Dr. John Whitney, Itronics president. “GOLD’n GRO Guardian Deer Repellent is a direct extension of the GOLD’n GRO liquid fertilizer technology and opens up a large new, rapidly growing, market segment for the company’s products.”

Management Briefs

Management Briefs

The Fertilizer Institute has appointed Rebecca Seigworth as director of economic services, a new position at TFI. Seigworth joins TFI’s economics team, which is responsible for supporting its efforts by formulating statistical information for the industry and providing economic analysis in the legislative, regulatory, and public affairs arenas. Seigworth recently earned a bachelor of science in agribusiness management from Pennsylvania State University, where she also served as a teaching and research assistant. Her academic research was primarily focused on emerging issues in economics, rural development, and policy. She also studied abroad at the University College Dublin, Belfield, in Dublin, Ireland, and was an agri strategy and alliance intern with the Allied Irish Bank.

Jeff Scoggins has joined the sales staff of Midwest Fertilizer Inc., headquartered in Paola, Kan. Scoggins was previously with Ben Trei, but has been involved in the fertilizer business since the late 1960s. In his new role at Midwest, Scoggins will cover the southeast Kansas and eastern Oklahoma markets, and will be based in Parsons, Kan.