 "Yara acquires Greenbelt Fertilizers to expand downstream footprint in Africa")
Yara International ASA on December 4, 2015 signed an agreement to acquire Greenbelt Fertilizers, a leading distributor of fertilisers in Zambia, Malawi and Mozambique for $ 51 million. Zambia with its neighbouring countries make up a fast-growing agricultural region with low but increasing fertiliser application rates, and Yara expect continued fertiliser demand growth in the region.
Greenbelt started operations in Zambia in 2004 and has become a leading fertiliser distributor in Zambia, Malawi and Mozambique, with sales of 80 kilotonnes and an EBITDA of $ 5 million in the fiscal year ending 31 March 2015. Greenbelt owns three blending plants and three warehouses. The transaction value includes net working capital of $ 32 million.
“This acquisition re-confirms Yara's long-term commitment to Africa. Greenbelt fits well with Yara and will further improve our downstream position within a fast-growing agricultural region,” said Terje Knutsen, head of downstream, Yara.
The transaction is expected to close in first quarter 2016, subject to competition authority approval and other customary closing conditions.
Greenbelt started operations in Zambia in 2004 and has become a leading fertiliser distributor in Zambia, Malawi and Mozambique, with sales of 80 kilotonnes and an EBITDA of $ 5 million in the fiscal year ending 31 March 2015. Greenbelt owns three blending plants and three warehouses. The transaction value includes net working capital of $ 32 million.
“This acquisition re-confirms Yara's long-term commitment to Africa. Greenbelt fits well with Yara and will further improve our downstream position within a fast-growing agricultural region,” said Terje Knutsen, head of downstream, Yara.
The transaction is expected to close in first quarter 2016, subject to competition authority approval and other customary closing conditions.