Yara Australia to sell its Yara Nipro liquid fertiliser business to Incitec Pivot Fertilisers
Incitec Pivot Fertilisers (IPF) has announced it has reached an agreement with Yara Australia to acquire the Yara Nipro liquid fertiliser business in Australia.
Yara first acquired an interest in Yara Nipro in 2008 before acquiring full ownership in 2011.
Since then, Yara Nipro has developed into a leading liquid fertiliser business in the region, however after a careful review, Yara has decided the liquid fertiliser business no longer fits with Yara’s growth strategy in Australia.
Yara Australia will continue to develop and distribute a premium range of products in Australia for dry application, the fertigation segment and foliar micronutrients.
Incitec Pivot Limited (IPL) Managing Director and CEO Jeanne Johns said the Yara Nipro business is complementary to IPF’s broader business, and the acquisition of Yara Nipro operations in Moree and Whitton in New South Wales and Boundary Bend in Victoria will provide excellent liquid fertiliser options and enhanced security of supply for farmers across the east coast of Australia.
“We are excited to add both the products and the expertise of Yara Nipro to our IPF team, and remain committed to supporting manufacturing in regional areas,” Ms Johns said.
“IPF will continue to invest in its Easy Liquids product range, which now includes the Nipro range, as farmers and agronomists increasingly look to capitalise on the significant productivity and sustainability benefits delivered by liquid fertilisers.”
These products provide farmers with a convenient option for storing fertilisers on farm without the risk of deterioration and reduce the need for manual handling.
They also allow for custom and precision application of nutrients, leading to more cost effective and sustainable plant nutrition solutions.
Combined with the ability to apply it in any season, wet or dry, liquid fertilisers present unrivalled flexibility for farmers when planning their input programs.
“Adapting to changing conditions is a way of life for Australian farmers, so the flexibility and options around when, how and in what combination liquid fertilisers can be used is a real draw card for farmers and agronomists,” Ms Johns said.
IPF Chief Financial Officer Chris Opperman said IPF is making an investment of circa $20 million.
“The acquisition is expected to be EPS accretive in the first year with additional synergies to enhance the returns further,” Mr Opperman said.
“The acquisition comes as IPL advances its proposed separation plans that would make IPF a standalone business.”
As Australia’s largest onshore manufacturer of plant nutrition products, IPF aims to play an important role in the agriculture industry’s target of being a $100 billion industry by 2030.
IPF’s investment in its liquid fertiliser business, together with the soil testing and analysis capabilities of its Nutrient Advantage Laboratory and significant investment in the ARC Research Hub for Smart Fertilisers supports the Federal Government’s National Soil Strategy.
“IPF’s strategy is to deliver market leading products and services that provide farmers with more sustainable plant nutrition solutions, help manage input costs, increase productivity and crop yields and improve the health of their most valuable asset, their soil,” Ms Johns said.
The acquisition is subject to ACCC clearance.
Source: Incitec Pivot Limited, Yara Australia