Airgas Inc., a U.S. distributor of industrial, medical, and specialty gases, announced on May 21 that it had acquired the aqua ammonia operations of Continental Nitrogen & Resources (CNR) in Rosemount, Minn. The business will be integrated into Airgas Specialty Products (ASP), a national distributor of ammonia products and services, various process chemicals, and refrigerants. Other operations of CNR were not included in the deal.
“This acquisition is in line with our strategy to expand our aqua ammonia business and capabilities and serve our growing customer base across the U.S.,” said Chuck Broadus, ASP president. ASP is based in Duluth, Ga., and has 24 locations nationwide for distribution of anhydrous ammonia and aqua ammonia products and services, and seven locations for distribution of refrigerants.
“We are very pleased with Airgas as the buyer of our aqua ammonia business in Rosemont, given its demonstrated commitment and capabilities to continue providing our customers with superior service,” said Ken Tummel, CNR vice president and general manager. CNR’s aqua ammonia facility at Rosemount had more than $2 million in revenues in 2006.
ASP was formed in 2005 when Airgas acquired the ammonia business of LaRoche Industries. The company added process chemicals and enhanced refrigeration capabilities with its January 2007 acquisition of CFC Refimax. Today, ASP is a leading supplier of ammonia products and services in the U.S. for nitrogen oxide abatement (DeNOx), metal finishing, water treatment, chemical processing, and refrigeration. Company-wide, more than 11,000 employees work in approximately 900 Airgas locations, including branches, retail stores, gas fill plants, specialty gas labs, production facilities, and distribution centers.
CNR, which was founded in 1986 and is owned by DHB Holdings Inc., is currently under negotiations with another buyer for the rest of the Rosemount operations. As reported in the May 14 issue of Green Markets, the entire site comprises 103 acres, which contain CNR’s anhydrous ammonia (25,000 st) and UAN (25,000 st) terminal and a 25,000 st dry bulk warehouse that is currently leased to Honeywell for the storage of ammonium sulfate. According to Risk Management Plan data from 2005, the company uses anhydrous piped from the terminal to create aqua ammonia blends ranging from 19-29 percent.
If the deal for the remaining Rosemount assets goes through as planned, the transaction will close in early June and CNR will effectively exit the fertilizer market. The prospective buyer, rumored to be a startup bio-fuels company, would continue the lease with Honeywell, but anhydrous and UAN would no longer be offered from that location.