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Yara to acquire Vale Cubatão Fertilizantes complex in Brazil

Nov 17, 2017

Oslo, 17 November 2017: Yara has entered into an agreement to acquire the Vale Cubatão Fertilizantes complex in Brazil from Vale S.A.  for an enterprise value of  USD  255 million.  The acquisition will establish Yara as a nitrogen producer in Brazil, strengthening its production footprint and complementing its existing distribution position.

"I am pleased to announce this agreement, which will bring nitrogen production assets into our growing portfolio in Brazil, strengthening both our industrial and fertilizer production and sales," said Svein Tore Holsether, President and Chief Executive Officer of Yara.

"The nitrogen assets have a strong competitive position, as Brazil is a net importer of nitric acid and nitrates. This deal is an important step towards establishing a more complete position in Brazil, strengthening our position as a long-term competitive industry player, committed to developing and investing in Brazilian agriculture and industry," said Svein Tore Holsether.

The Cubatão asset is a nitrogen and phosphate complex with an annual production capacity of approximately 200 kilotons of ammonia, 600 kilotons of nitrates and 980 kilotons of phosphate fertilizer.  The complex employs approximately 970 permanent and 930 contracted employees.

Natural gas feedstock for the ammonia production is sourced from local suppliers, while additional ammonia, phosphate rock, sulphur and other raw materials are supplied via a nearby import terminal which is not part of the transaction.

In 2016 the Cubatão complex sold approximately 1.3 million tonnes of nitrogen and phosphate products (2.5 million tonnes including CO2 and other intermediate products), generating pro-forma net revenues of USD 413 million and an EBITDA of USD 30 million. 2015 pro-forma net revenues and EBITDA were respectively USD 532 million and USD 89 million. The purchase price will be adjusted at closing for any deviation between the closing working capital and a normalized working capital level.

Yara expects to make upgrading investments of approximately USD 80 million up to 2020 in order to realize annual synergies of USD 25 million through a combination of cost, asset and product portfolio optimizations.

The agreement is subject to the approval of relevant competition authorities and other regulatory approvals. The agreement is also subject to the right of first refusal of a third party not being exercised by end 2017. Closing is expected to take place in second half 2018.


For further information, please contact:

Thor Giæver, SVP Investor Relations
Office: (+47) 24 15 72 95
Mobile: (+47) 48 07 53 56
E-mail: thor.giaver@yara.com

Esben Tuman, Vice President Corporate Communications
Mobile: (+47) 90 50 84 00
E-mail: esben.tuman@yara.com

Kristin Nordal, Head of External Communications
Mobile: (+47) 90 01 55 50
E-mail: kristin.nordal@yara.com


About Yara

Yara's knowledge, products and solutions grow farmers', distributors' and industrial customers' businesses profitably and responsibly, while protecting the earth's resources, food and environment.

Our fertilizers, crop nutrition programs and technologies increase yields, improve product quality and reduce the environmental impact of agricultural practices. Our industrial and environmental solutions improve air quality by reducing emissions from industry and transportation, and serve as key ingredients in the production of a wide range of goods. We foster a culture that promotes the safety of our employees, contractors and societies.

Founded in 1905 to solve emerging famine in Europe, today Yara has a worldwide presence, with close to 15,000 employees and sales to about 160 countries.

www.yara.com

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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