CF Industries to purchase Waggaman ammonia production from Incitec for $1.68B

CF Industries announced that it has signed a definitive purchase agreement with Incitec Pivot for IPL’s ammonia production complex located in Waggaman, Louisiana. The facility has a nameplate capacity of 880,000 tons of ammonia annually. Under the terms of the agreement, CF Industries will purchase the Waggaman ammonia plant and related assets for $1.675B. The companies will allocate approximately $425M of the purchase price to a long-term ammonia offtake agreement under which CF Industries will supply up to 200,000 tons of ammonia per year to IPL’s Dyno Nobel subsidiary. CF Industries expects to fund the remaining $1.25B of the purchase price with cash on hand.