Chance & Hunt buys GrowHow UK’s Carbon Dioxide business

2 June 2008

Peter Fields

Chance & Hunt Limited, part of the Azelis Group based in Runcorn, UK, has announced it has closed a deal to purchase GrowHow UK Limited’s (GHUK) carbon dioxide liquefaction business at Billingham, UK. GrowHow UK Ltd is a joint venture between Terra Industries Inc. (US) and Yara International ASA (Norway)

The business to be acquired is based on the manufacturing, sales and distribution of liquefied carbon dioxide derived as a co-product from the ammonia plant operated by GHUK. Carbon dioxide has its greatest application in the production of carbonated beverages and is also used in the cold-chain in the food industry to keep food fresh as well as a number of cooling and freezing applications. Product supplied from the Billingham plant has HACCP and Kosher certification.

This deal follows the successful take-over and integration of Kemira GrowHow’s Process Chemicals business in 2007 involving the sales of nitric acid, anhydrous ammonia and aqueous ammonia in the UK. This came about as a consequence of Kemira GrowHow’s joint venture with Terra Nitrogen (UK) to form GHUK.

The opportunity to purchase the Liquefied Carbon Dioxide business, which has annual sales of more than £ 5 million, arose as a result of commitments given by Yara International ASA to the European Commission in respect of its acquisition of Kemira GrowHow (including Kemira GrowHow’s interest in GHUK). The sale of the GrowHow UK carbon dioxide business to Chance & Hunt has been approved by the European Commission.

An important element of the divestment of the GrowHow UK Limited carbon dioxide business is an Operating and Maintenance Agreement together with the requisite long-term lease on assets. This will effectively provide toll-manufacturing facilities to Chance & Hunt who will operate completely independently from GHUK hence replicating the competitive position previously generated by GHUK.

For more information on Chance & Hunt, see:  http://www.chance-hunt.com

ENDS

For more information contact:
Dianne Nott Tel 01925 267557 Mob 07860 272754
dmn@clear-communications.co.uk