GROWMARK To Purchase Fertilizer Terminals From CF Industries
GROWMARK, Inc. has signed an agreement to acquire four fertilizer storage terminals currently owned by CF Industries.
January 6, 2011
GROWMARK, Inc. has signed an agreement to acquire three fertilizer storage terminals currently owned by CF Industries. The facilities, located in Albany and Mapleton, IL, and St. Louis, MO, will be used by GROWMARK to serve the needs of the organization's retail customers that provide fertilizer to farmers. A GROWMARK subsidiary will purchase a fourth terminal, in Cincinnati, OH, which is also currently owned by CF.
The transaction is expected to close in January.
The Albany, Mapleton, St. Louis, and Cincinnati terminals are all strategically located, and will allow GROWMARK the ability to efficiently source plant food by barge and load out to railcars or truck. The size and scope of the facilities will further enhance GROWMARK's capability to make large-scale purchases of both domestic and offshore fertilizer production. The terminals are widely recognized for being well maintained with customer service teams known for providing outstanding service. The acquisition will increase the terminal storage base from which GROWMARK can continue to pursue its growth plans by providing additional truck outlets along with the ability to economically reach extended rail delivery points.
"This acquisition supports GROWMARK's strategy to grow in and from its core businesses," says Jim Spradlin, GROWMARK vice president, agronomy. "We have been sourcing fertilizer to enable optimal crop production for more than 80 years. Providing a reliable supply of products when and where our retailer customers need them is essential to our success as a plant food supplier. As we continue to pursue our growth goals, having strategically located supply points is imperative. This opportunity improves our supply and service capabilities, while bringing increased efficiency to our plant food operations."
Overall, the acquisition represents approximately 226,000 tons of dry and liquid plant food storage.
"We will remain proactive in pursuing acquisitions and joint ventures that support our growth and service goals," adds Rod Wells, GROWMARK director, agronomy sales and operations. "This is the case over our entire service geography from Colorado to the East Coast."