Rentech Nitrogen Divested Pasadena Fertilizer Facility
United
States: Rentech
Nitrogen Partners, L.P announced that it has sold its Pasadena, Texas manufacturing
facility to an affiliate of Interoceanic Corporation (IOC), namely, Pasadena
Commodities International. Pasadena Commodities International has been a distributor
for ammonium sulfate in North America to the facility for a long time. The deal
was closed at an initial cash payment of about USD5 million to Rentech Nitrogen
in addition to a cash working capital adjustment of around USD6 million. The
transaction is expected to be completed within ninety days after confirmation
of the purchase amount. Moreover, under the terms of the agreement an earn-out
is expected to be paid to the unitholders of Rentech Nitrogen which would be 50
per cent of the facility’s EBITDA in excess of USD8 million earned by 2018.
TechSci Research depicts that the transaction between Rentech Nitrogen and Pasadena
Commodities International is a
step towards the closure of the merger of Rentech Nitrogen with CVR Partners,
which would create a new leader in North America urea ammonium nitrate (UAN)
market. Additionally, the purchase agreement would prove to be favorable to
both sets of unitholders.
According to TechSci Research report, “Iran Fertilizers Market Forecast and Opportunities, 2020”, the fertilizer market in
Iran is projected to grow at a CAGR of over 3.5% during 2015 – 2020.
Additionally, abundant availability of natural gas resources in the country
have transformed Iran into a major production base for urea and other nitrogen
fertilizers. In 2014, a lion’s share in the total demand for fertilizers in
Iran was accounted for by nitrogen fertilizers such as ammonium nitrate and
urea, among others.