WICHITA, Kan., Aug. 29, 2024 /PRNewswire/ -- Koch Ag & Energy Solutions, LLC (KAES), a global provider of solutions for the agriculture, energy and chemical markets, has successfully completed its acquisition of OCI Global's fertilizer plant in Wever, Iowa, for $3.6 billion.
Announced December 18, 2023, the acquisition gives KAES ownership of the state-of-the-art facility and its related business. The facility opened in 2017 and has the capacity to produce 3.5 million metric tons of nitrogen fertilizers and diesel exhaust fluid annually, complementing KAES's existing business.
"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."
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."
Through the acquisition, KAES is pleased to welcome approximately 300 new employees to the Koch Fertilizer family.
"We are impressed with the employees and look forward to working with the team to maintain safe and reliable operations while exploring opportunities to grow production in the future," said Pascal Van Teeffelen, KAES executive vice president of operations and compliance.
Barclays served as the exclusive financial advisor to KAES on the transaction, and Jones Day acted as its legal advisor.
Editor's note - As of August 1, 2024, the name of the ultimate parent company of Koch Ag & Energy Solutions and Koch Fertilizer is Koch, Inc., not Koch Industries, Inc.
About Koch Ag & Energy Solutions (KAES)
Koch Ag & Energy Solutions, LLC and its subsidiaries, including Koch Fertilizer, Koch Agronomic Services, Koch Energy Services and Koch Methanol, are global providers of value-added solutions for the agriculture, energy and chemical markets.
Koch Fertilizer
Koch Fertilizer, LLC and its affiliates own or have interests in nitrogen fertilizer plants in the United States, Canada, and Trinidad and Tobago as well as a phosphate fertilizer plant in Morocco. The companies cover global demand through state-of-the-art terminals in the U.S., Canada, Mexico, Brazil and Australia. Koch Fertilizer, LLC and its affiliates have the capability to market and distribute approximately 12 million tons of fertilizer products annually. Koch Fertilizer, LLC is a subsidiary of Koch Ag & Energy Solutions, LLC.
View original content to download multimedia: https://www.prnewswire.com/news-releases/koch-ag--energy-solutions-completes-acquisition-of-wever-iowa-fertilizer-plant-302234228.html
SOURCE Koch Ag & Energy Solutions
Local News
