Yara Expands in LatAm

Norwegian fertilizer company Yara International has agreed to acquire fertilizer producer OFD Holding from Omimex Resources for $425m, it says. The deal includes the Abocol business in Colombia, Misti in Peru, Omagro in Mexico, Fertitec in Panama and Costa Rica, Cafesa in Costa Rica and Norsa in Bolivia – all engaged in production and distribution. Yara sees the new assets as strengthening its downstream footprint and growth platform in Latin America, and complementary to its $750m acquisition of Bunge’s fertilizer business in Brazil last year. The buyer estimates an annual synergy potential of $20m. OFD had net revenues of $796m in 2012 and Ebitda of $35m. Closing is expected during 2Q 2014 subject to approvals. Yara did not respond to a request for additional comment.