K+S to Sell Nitrogen Fertilizer Distribution Unit to EuroChem

K+S AG (SDF), Europe’s biggest potash distributor, agreed to sell its nitrogen fertilizer distribution unit to OAO EuroChem in a transaction that values the business at about 140 million euros ($182 million).

K+S anticipates closing the sale of K+S Nitrogen by the end of the second quarter, depending on approval from European Union regulatory authorities, the Kassel, Germany-based company said in an e-mailed statement.

EuroChem, owned Russian billionaire Andrey Melnichenko, purchased parts of BASF SE (BAS)’s Antwerp-based nitrogen fertilizer business for 830 million euros earlier this month. K+S, which is focusing on potash and salt, has an exclusive agreement to sell output from the BASF plants being acquired by EuroChem.

“The acquisition of K+S Nitrogen represents a logical extension to our latest acquisition in Antwerp,” EuroChem Chief Executive Officer Dmitry Strezhnev said in the statement. “It gives us a globally recognized platform and will further secure our competitiveness in important markets globally.”

K+S Nitrogen had earnings before interest and taxes of 69.4 million euros on revenue of 1.16 billion euros in 2011, according to the statement. The sales will generate a book profit 70 million euros to 80 million euros.

To contact the reporters on this story: Sheenagh Matthews in Frankfurt at smatthews6@bloomberg.net; Alex Webb in Frankfurt at awebb25@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.