- CEO Letter
- Leadership
- Ways to Win
- 2017 Highlights
Our 2015 acquisition of the outstanding 50 percent equity interest in our CF Fertilisers UK business demonstrated our ability to operate effectively outside of our traditional North American base. CF is the U.K.’s only producer of nitrogen fertilizer, and much like our U.S. operations, enjoys favorable in-region advantages. Taking operational control of this business for the first time allowed us to increase asset utilization by nearly 20 percent between 2015 and 2017 and deliver synergies in excess of $35 million per year.
Through the cycle, we approach our portfolio with discipline and creativity, focusing on how best to deliver maximum shareholder value.
We have consistently demonstrated our ability to create shareholder value through acquisitions. From the acquisition of Terra, the remaining interest in our Medicine Hat complex in Canada and the interest in GrowHow we did not already own (now CF Fertilisers UK — see sidebar), we have consistently improved asset utilization and delivered synergies. Most recently, we exercised our right to purchase all the outstanding publicly traded units of Terra Nitrogen Company, L.P., and expect to capture cost reductions and network optimization benefits as a result.
We have also created significant value through divestitures of non-core assets. For example, in 2014 we sold our phosphate business for $1.4 billion in a tax-efficient transaction.
We have also creatively structured strategic ventures with key industry leaders that result in mutually-beneficial relationships. Most notably, we formed a strategic venture with CHS Inc., which invested $2.8 billion in our CF Industries Nitrogen, LLC subsidiary. We have also established several long-term supply agreements with leading companies such as CHS Inc., Mosaic Company and Orica and Nelson Brothers that deliver value for both parties over the life of the arrangements.
