Koch completes acquisition of Iowa Fertilizer Co.

WEVER – Koch  announced today that it has closed on the purchase of the Iowa Fertilizer Co in Wever.
The $3.6 billion sale divests OCI Global from its ownership interest in the facility.
The sale marks the end of a controversial nine-month federal review after Koch Ag & Energy Solutions announced in December that they had made an offer on the large-scale US greenfield nitrogen fertilizer facility.
The deal required multiple regulatory and shareholder approvals and drew the ire of Iowa State Auditor Rob Sand who said OCI was going back on their commitment to increase competition in the fertilizer field by selling to Koch.
In 2012, OCI received more than $110 million in state incentives, about $130 million in property tax exemptions through a Payment In Lieu of Taxes (PILOT) agreement with Lee County,  as well as $300 million in tax benefits through the sale of disaster bonds for construction of the facility.
Iowa Fertilizer was the first greenfield nitrogen fertilizer plant built in the United States in more than 25 years, and the largest private construction project in Iowa’s history, adding more than 3,500 jobs during the construction period.
"This acquisition marks another significant investment in the growth of our fertilizer business," said Mark Luetters, president of Koch Ag & Energy Solutions. "In the past 15 years, we have invested $2 billion in our North American production facilities to enhance reliability, expand production and improve logistics for our customers. This investment enhances our ability to serve customers long-term by providing additional flexibility to adapt to their nitrogen preferences."
Since commissioning in April 2017, the facility has revitalized a core industry in the United States reflecting OCI’s continued investment in the plant’s ongoing development, and in the surrounding region’s distribution and logistics infrastructure to support the Midwest’s agriculture industry, OCI global said in a statement released Thursday.
 “The successful closing of the IFCO transaction is the latest example of OCI’s steadfast commitment to creating value for its shareholders. This milestone further reinforces OCI’s standing and record as a successful developer, operator, and investor. Looking ahead, we will continue to deploy our distinctive knowledge, management expertise, and entrepreneurial spirt into further value-accrued ventures,” said Nassef Sawiris, Executive Chairman of OCI.
Ahmed El Hoshy, CEO of OCI echoed the comments.
 “We are exceptionally proud of OCI and the IFCO operating team’s remarkable achievements in converting a cornfield into a world-class global nitrogen facility and in revitalizing a core industry in the United States. KAES today is opportunely positioned both strategically and geographically to leverage and diversify its extensive platform, and to create significant opportunities to drive the facility’s future growth. We have been impressed by the entire KAES team throughout this process and wish them the best of luck in their onward journey,” said El Hoshy.
The Wever facility joins the existing Koch Fertilizer fleet, which includes four nitrogen production facilities in the U.S. and one in Canada plus an extensive terminal network. The company and its affiliates also have partial ownership of three nitrogen facilities in Trinidad and Tobago, as well as a phosphate production facility in Morocco.
|"We are excited about the opportunities the Wever facility provides to better serve existing and new customers," said Scott McGinn, executive vice president of Koch Fertilizer. "The plant's location allows us to extend our product offerings to new customers in the eastern U.S. and provide all customers with expanded products and services."