Kasel — Germany’s K+S Aktiengesellschaft has signed an agreement with EuroChem regarding the sale of K+S Nitrogen. The transaction, with an enterprise value of €140 million, is likely to be closed at the end of the second quarter. The effective economic date of the transfer is March 31, 2012. The sale is subject to a number of factors, including approval by the EU antitrust authority. For K+S, the sale will generate a book profit of around €70-80 million, depending on the net earnings of K+S Nitrogen generated by the time the transaction is closed, together with other effects. From now on, K+S Nitrogen will be stated as a “discontinued operation.” In financial year 2011, K+S Nitrogen generated revenues of €1,156.8 million and operating earnings EBIT I of €69.4 million. This fits into K+S Group plans to focus on its two main segments – Potash/Magnesium and Salt. It sold its COMPO fertilizer unit to Triton last year. K+S Nitrogen markets nitrogen fertilizers, with a focus on major customers in agriculture and special crops such as fruits, vegetables, and grapes. In addition to the fertilizers produced by EuroChem Antwerpen and delivered for it by BASF, K+S Nitrogen also markets the goods of other European fertilizer producers. The company is based in Mannheim, Germany, and employs about 180 people worldwide. EuroChem produces primarily nitrogen and phosphate fertilizers, as well as certain organic synthesis products and iron ore. It is vertically integrated, with activities spanning mining and natural gas extraction to production, logistics, and distribution. The company is currently developing two sizeable potash deposits in Russia with the Gremyachinskoe and Verkhnekamskoe greenfield projects.
Transparency Across the Fertilizer Value-Chain