Iowa fertilizer plant sold to Koch for $3.6B

By Andi Anderson

Koch Ag & Energy Solutions, LLC (KAES), a leader in agriculture, energy, and chemical markets, has successfully acquired OCI Global's fertilizer plant in Wever, Iowa, for $3.6 billion.

The acquisition, announced on December 18, 2023, provides KAES with ownership of a state-of-the-art facility that significantly boosts its production capacity and market reach.

The Wever facility, which opened in 2017, has the capability to produce 3.5 million metric tons of nitrogen fertilizers and diesel exhaust fluid annually.

This addition complements KAES's existing operations, which include four nitrogen production facilities in the U.S., one in Canada, and an extensive terminal network. The company also has stakes in three nitrogen facilities in Trinidad and Tobago and a phosphate production facility in Morocco.

Mark Luetters, president of Koch Ag & Energy Solutions, highlighted the importance of this acquisition, stating, "This acquisition marks another significant investment in the growth of our fertilizer business. Over the past 15 years, we have invested $2 billion in our North American production facilities to enhance reliability, expand production, and improve logistics for our customers. This investment enhances our ability to serve customers long-term by providing additional flexibility to adapt to their nitrogen preferences."

The strategic location of the Wever facility will allow Koch Fertilizer to extend its product offerings to new customers in the eastern U.S. while providing expanded products and services to existing customers.

"We are excited about the opportunities the Wever facility provides to better serve existing and new customers," said Scott McGinn, executive vice president of Koch Fertilizer.

In addition to the production capacity, the acquisition brings approximately 300 new employees to the Koch Fertilizer family.

Pascal Van Teeffelen, KAES executive vice president of operations and compliance, expressed confidence in the new team, stating, "We are impressed with the employees and look forward to working with the team to maintain safe and reliable operations while exploring opportunities to grow production in the future."

Barclays served as the exclusive financial advisor to KAES for this transaction, with Jones Day acting as the legal advisor. This acquisition marks a significant milestone for KAES, reinforcing its commitment to growth and customer satisfaction in the fertilizer industry.

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