CF Industries Ready to Move Forward to Acquire Louisiana Ammonia Production Facility
First announced in March 2023, CF Industries Holdings, Inc. is now ready to move forward with the closing of its acquisition of Incitec Pivot Limited’s (IPL) ammonia production complex located in Waggaman, Louisiana. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired, and the completed transaction date is set for Dec. 1, 2023.
CF Industries will purchase the ammonia plant and related assets for $1.675 billion.
The site was first commissioned October 2016 and has a nameplate capacity of 880,000 tons of ammonia per year.
Per the deal, the companies will allocate approximately $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 per year to IPL’s Dyno Nobel subsidiary at production economics.
“We are pleased to reach this agreement with Incitec Pivot Limited that benefits from our industry-leading ammonia production capabilities, deploys our capital efficiently and provides long-term value for both companies’ shareholders,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “We believe the Waggaman facility will fit seamlessly into our network, as well as our strategic focus on ammonia as a clean energy source, given its proximity and pipeline connection to our Donaldsonville, Louisiana, Complex, its distribution and logistics flexibility, and its favorable characteristics for the addition of carbon capture and sequestration (CCS) technologies to enable low-carbon ammonia production.”
The facility has 90 employees. And it’s 60 miles southeast of CF Industries’ Donaldsonville Complex.
The company says its ammonia produced at the Waggaman facility is distributed ratably to three customers, including Dyno Nobel, with approximately 75% used in industrial applications.
