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Thursday, May 5, 2016

Terra Industries to acquire Mississippi Chemical

Tuesday, August 10, 2004

Terra Industries Inc. is acquiring Mississippi Chemical Corp. in a deal worth $268 million, the companies announced Monday.

Terra, a Sioux City-based nitrogen fertilizer company, will acquire all the outstanding shares of Mississippi Chemical, a producer of nitrogen products for crop nutrients and industrial applications.

The deal includes cash, assumed debt of $161 million and stock valued at $107 million.

Mississippi Chemical, based in Yazoo City, Miss., and its domestic subsidiaries are currently operating under Chapter 11 bankruptcy.

Both companies' boards of directors have approved the deal.

Since Mississippi Chemical is under Chapter 11, the agreement is subject to the approval of the U.S Bankruptcy Court and other regulatory approvals.

The transaction is expected to be completed no later than the first quarter of 2005.

"This is an important step in our efforts to strengthen Terra's asset base and position the company for the long-term," said Michael L. Bennett, Terra's president and chief executive officer.

Terra also has plants in Texas, Oklahoma, Canada and the United Kingdom.

"This transaction is an important step forward in completing the company's plan of reorganization," said Coley Bailey, chairman and CEO of Mississippi Chemical.

Mississippi Chemical owns a 50 percent interest in Point Lisas Nitrogen Limited in The Republic of Trinidad and Tobago. It also has a plant and storage and distribution center in Donaldson, La., along with an ammonia terminal near Houston.

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