Agrium finalizes $70-million sale of East Dubuque Nitrogen Facility to Rentech

28-Apr-2006

Agrium Inc. and Rentech, Inc. announced that Rentech has completed the purchase of Royster-Clark nitrogen, Inc. from Royster-Clark, Inc., a wholly-owned subsidiary of Agrium for approximately $70-million. The sale includes the East Dubuque nitrogen facility and associated working capital. The sale price was $50-million in cash plus approximately $20-million for the net working capital acquired at closing.

The East Dubuque nitrogen facility is an 830-ton ammonia per day natural gas-fed nitrogen fertilizer plant located in East Dubuque, Illinois. Rentech intends to convert the facility's feedstock from natural gas to coal. Agrium has been appointed the exclusive distributor of the anhydrous ammonia, UAN solutions, nitric acid and granular urea manufactured at the facility for agricultural and industrial use in the U.S., as part of a related 10-year distribution agreement.

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