OCI Global, a leading global producer and distributor of hydrogen products, has successfully completed the sale of its 100 percent indirect interest in the large-scale US nitrogen fertiliser facility, Iowa Fertiliser Company LLC, located in Wever, Iowa, to Koch Ag & Energy Solutions. The divestment, initially signed on December 18, 2023, follows the necessary regulatory and shareholder approvals.
This transaction represents a significant milestone in OCI’s ongoing strategic value creation journey. The expected cumulative realisation of approximately USD 9.5 billion in gross cash proceeds from the recent sales of Fertiglobe, IFCO, and OCI Clean Ammonia provides OCI with substantial flexibility to execute its capital allocation priorities. These priorities include deleveraging at a gross level and returning significant capital to shareholders.
IFCO was the first greenfield nitrogen fertiliser plant built in the United States in over 25 years and the largest private construction project in Iowa’s history, generating more than 3,500 jobs during its construction phase. Since its commissioning in April 2017, the facility has revitalised a core industry in the US, reflecting OCI’s sustained investment in the plant’s development and in the surrounding region’s distribution and logistics infrastructure to support the Midwest’s agriculture industry. OCI is confident that under KAES’s stewardship, IFCO is well-positioned for its next phase of growth.
Nassef Sawiris, executive chairman of OCI, commented: “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 spirit into further value-accretive ventures.”
Ahmed El Hoshy, CEO of OCI, added: “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 revitalising a core industry in the United States. KAES today is well positioned both strategically and geographically to leverage and diversify its extensive platform, creating 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.”
The successful divestment of IFCO highlights OCI’s strategic focus on enhancing value through selective divestitures and capital reallocation, strengthening its financial position, and supporting future growth initiatives.
For more information visit www.oci-global.com
