Industry News

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.

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