Yara has signed an agreement to acquire the assets of West Sacramento Nitrogen Operations from Agrium for a purchase price of $27 million. Yara will utilize the location as an import terminal for finished products, optimizing the site within the total footprint of Yara's West Coast operations. The transaction is expected to close by the end of 2015, pending satisfaction of customary legal conditions.
This acquisition underlines Yara's commitment to better serve the needs of agricultural communities on the West Coast placing the company in a better position to supply a growing customer base in the region.
"Yara has a proud, 65-year long history of doing business in California. As the world's largest producer of mineral fertilizer, we believe strongly in the prospects of California's farmers and retailers. This planned acquisition emphasizes our commitment to the region's agricultural market," says Jørgen C. Arentz Rostrup, President of Yara North America.
The West Sacramento terminal will provide Yara with greater market access to Northern California and its intensive agricultural market. The newly-acquired site will be used as an import terminal for finished products and complements Yara's terminals in San Diego, Stockton and Port Hueneme. The logistical advantages of this strategically important asset will improve Yara's customer service, reduce truck transit times, conserve fuel and enhance overall logistical efficiencies.
"We believe that our broad portfolio of value-adding crop nutrients and commodities are well-suited to meet the needs and challenges faced by California's agricultural communities," says Rostrup. "Yara is committed to helping North American farmers improve crop yields, crop quality and crop profitability."
The newly acquired terminal will increase the company's storage capacity, allowing for a continuous, predictable, year-round product supply and limiting the chances of product shortages. Greater storage capacity will also improve product flow at Yara's other California-based locations, especially during the busy peak seasons. A reliable, consistent and long-term supply of fertilizers is important for Yara's retail customers.
"Yara looks forward to growing its presence in the California market and to enhancing service to this very important agricultural region for years to come," says Rostrup.