Agrotain International has agreed to sell its assets to Koch Agronomic Services, LLC, a subsidiary of Koch Fertilizer, LLC. The transaction is subject to regulatory approval and certain other closing conditions. The deal is expected to close in the third quarter.
Agrotain President Mike Stegmann reports that because the company experienced rapid growth, it needed additional resources to meet demand. The company says is it the world’s largest producer of StabilizedNitrogen fertilizers, which are marketed under the brands Agrotain, Agrotain Plus, SuperU, HYDREXX, UMAXX and UFLEXX. StabilizedNitrogen fertilizer products contain proprietary nitrogen stabilizer technology.
“As Koch has a strong presence in the fertilizer business, they approached us about possibly working together,” Stegmann says. “We saw how their resources could help bolster our position as a market leader in the enhanced efficiency fertilizer business and it evolved into an offer to purchase.”
“Agrotain International is an outstanding company with a long history of providing value-added products and a dedicated, customer-focused workforce,” says Steve Packebush, president of Koch Fertilizer. “The organization truly has an entrepreneurial spirit that lends itself well to take advantage of significant growth opportunities within the enhanced efficiency fertilizer market.”
News of the agreement was shared with Agrotain International employees in a company-wide conference call. During the call, Stegmann expressed his sincere desire to continue growing the business and said the potential deal with Koch was the best way to provide for a successful future. He also clarified that Lange-Stegmann Company was not part of the purchase offer and would continue its terminal operations in St. Louis.
Koch Fertilizer and its affiliates own or have interests in nitrogen fertilizer plants in the United States, Canada, and Trinidad and Tobago. The companies cover global demand through terminals in the U.S., Canada, Mexico, Australia, France and the United Kingdom. Koch Fertilizer and its affiliates, including Koch Nitrogen Company and Koch Fertilizer Canada, have the capability to manufacture, market and distribute more than 13 million tons of fertilizer products annually. Koch Fertilizer is an indirect, wholly owned subsidiary of Koch Industries, Inc., one of the largest private companies in America according to Forbes. For more information, visit www.kochfertilizer.com.