05 July 2023
In June 2022, Borealis AG received a binding offer from AGROFERT, a.s. for the acquisition of its nitrogen business including fertilizer, melamine and technical nitrogen products. On July 5, 2023 the transaction, valuing the business on an enterprise value basis at EUR 810 million, has been completed.
AGROFERT is a Czech-based group active in a number of industries in Central Europe, with activities spanning from chemicals and agriculture to food production. Generating a consolidated turnover of EUR 10 billion in 2022, the group comprises more than 200 companies and employs approximately 31 thousand people. AGROFERT is also one of the leading European nitrogen fertilizer producers, with manufacturing facilities in Germany, the Czech Republic, and Slovakia.
By adding Borealis’ production assets in Austria, Germany, and France, as well as a comprehensive sales and distribution network, this business combination complements AGROFERT’s existing capabilities in serving its customers in the fertilizers and technical nitrogen business across Europe. Additionally, the sale extends AGROFERT’s existing portfolio with melamine.
“Agrofert’s acquisition of Borealis‘ nitrogen business, with their long-term commitment to further develop the fertilizer business, is to the best advantage for the security of supply in Austria and Europe, as well as for all impacted employees,” comments Thomas Gangl, Borealis CEO. “Based on this transaction, a strong European company will now evolve, securing stable supply of fertilizers and, as a consequence, with crops and food products for Austria and Europe. Borealis will now continue to focus on its core activities of providing innovative and sustainable solutions in the fields of polyolefins and base chemicals and on the transformation towards a circular economy.”
ʺFertilizer production is one of the key segments of the AGROFERT group, and we trust in its future in Europe. Our priority, now, will be to integrate Borealis’ nitrogen business into the AGROFERT group, that enable us to approximately double our production capacity and, at the same time, to enter the new markets, namely France, Benelux countries, Bulgaria and Serbia. Our goal as a strategic investor is to develop existing operations and further invest in their modernization and sustainability, just as we have been doing in the Czech Republic, Germany and Slovakia for many years. We see it as our responsibility to provide farmers with sufficient amount of quality fertilizers in the countries where we operate. We are aware of our impact on the environment and the commitments arising from decarbonisation. One of our core values is to be a good neighbour wherever we operate. We respect the places where we operate. We believe that we will be able to develop this approach in new locations where we will do our business, and local municipalities and communities will appreciate it,ʺ said Petr Cingr, Vice Chairman of the Board of Directors at AGROFERT, a.s. responsible for Fertilizers, Fuels, Oils and Renewables.