- The acquisition is valued at EUR 810 million.
- AGROFERT's consolidated turnover was EUR 7.5 billion in 2021.
- The transaction is expected to close in the second half of 2022.
- The deal includes fertilizer, melamine, and technical nitrogen products.
Acquisition Details
Borealis has received a binding offer from AGROFERT for its nitrogen business, which includes fertilizer, melamine, and technical nitrogen products. The offer values the business at EUR 810 million on an enterprise value basis.
AGROFERT's Profile
AGROFERT, based in the Czech Republic, operates in various industries across Central Europe, including chemicals, agriculture, and food production. In 2021, the group generated a consolidated turnover of EUR 7.5 billion, comprising over 200 companies and employing around 31,000 people. AGROFERT is a leading European nitrogen fertilizer producer with facilities in Germany, the Czech Republic, and Slovakia.
Strategic Fit
The acquisition will add Borealis' production assets in Austria, Germany, and France to AGROFERT's portfolio, along with a comprehensive sales and distribution network utilizing the Danube River. This combination is expected to enhance AGROFERT's capabilities in serving its European customers.
Next Steps
Borealis will soon begin mandatory information and consultation procedures with employee representatives. The transaction is subject to closing conditions and regulatory approvals, with an expected completion in the second half of 2022.
Borealis' Future Focus
Post-transaction, Borealis will concentrate on its core activities, including providing innovative and sustainable solutions in polyolefins and base chemicals, and advancing towards a circular economy.
