Yara acquires Gulf Coast Ammonia Texas City plant for USD 1.3bn

Deal overview

Yara North America has agreed to buy Gulf Coast Ammonia’s Texas City, Texas production facility from GCA Holdings LLC (affiliated with Lotus Infrastructure Partners and MB Energy) for USD 1.3 billion. The acquisition follows an auction process in which J.P. Morgan acted as financial advisor to the sellers. Completion is subject to customary closing conditions and regulatory approvals.

Operations and supply

The plant includes the ammonia synthesis loop, storage and exclusive loading infrastructure and has a 1.3 million tonne per annum nameplate. It is currently in commissioning and is expected to ramp toward full production and stable operations by the end of 2026, with Yara targeting output at or above nameplate. Hydrogen, nitrogen and other utilities will be supplied under a long-term contract with Air Products, and Yara will use its midstream ammonia platform to supply both external customers and its own production needs.

Financial impact and capital discipline

The USD 1.3 billion consideration raises Yara’s total 2026 capex to USD 2.5 billion and is within the company’s announced ammonia investment envelope for 2026–2030. As of 1Q 2026 Yara reported Net debt/EBITDA of 1.00; the acquisition implies a pro‑forma Net debt/EBITDA of 1.73 including a May dividend, consistent with its capital allocation targets and credit objectives.

Next steps

Yara’s immediate priorities are to complete commissioning, stabilise operations, and deliver on previously announced EBITDA improvement targets. The deal presents optional pathways for low‑carbon ammonia deployment and extends Yara’s collaboration with Air Products on supply and marketing initiatives.