IW 50 Best: CF Industries and Terra Together At Last

Merger complete after yearlong takeover battle

CF Industries Holdings Inc. completed a deal on April 15 that will create the world's second-largest nitrogen fertilizer manufacturer.

Deerfield, Ill.-based CF Industries said on April 15 it acquired more than 90% of Terra Industries Inc.'s shares, meaning the company can complete the acquisition without approval from Terra's stockholders.

CF Industries said on March 12 that it came to terms with rival Terra Industries Inc. to purchase the company for $4.7 billion, ending a hostile takeover bid that lasted more than a year.

The announcement occurred after Agrium Inc. allowed its $5.43 billion offer for CF Industries expire.



CF Industries Holdings Inc.
At A Glance


CF Industries Holdings Inc.
Deerfield, Ill.
Primary Industry: Chemicals
Number of Employees: 1,600
2008 In Review
Revenue: $3.92 billion
Profit Margin: 17.46%
Sales Turnover: 1.64
Inventory Turnover: 6.58
Revenue Growth: 42.24%
Return On Assets: 34.02%
Return On Equity: 57.68%

Terra stockholders will receive $37.15 in cash and 0.0953 of a share of CF Industries common stock for each Terra share, CF Industries said in a March 12 statement.

The announcement came about two months after CF Industries said it had sold all its Terra shares and decided to stop pursuing the company after a yearlong battle. CF Industries had initially offered $2.1 billion for Terra.

The merger is expected to create annual cost savings of up to $135 million through the elimination of overlapping corporate functions, optimization of transportation and distribution systems, and greater economies of scale in procurement and purchasing, CF Industries said.

"A combined CF Industries and Terra creates a strong leader in the global fertilizer industry with superior assets that will generate long-term value for stockholders, provide more benefits to customers and offer increased opportunities to employees," said Stephen Wilson, president and CEO of CF Industries, in a statement.

CF Industries also expects Terra's focus on industrial customers will complement CF Industries focus on agricultural customers.


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