National Resource Partners has purchased a 48.51 percent stake in OCI Wyoming LP, the world's fifth-largest producer of soda ash, from Anadarko Petroleum Inc. for $310 million.
The agreement also contains an earn-out provision, which would require NRP to pay Anadarko up to $50 million, on a net present value basis, over a three-year period if OCI Wyoming L.P. achieves specified revenue targets during that period. The acquisition was funded through a $200 million term loan, the issuance of $76.5 million in equity, including a general partner contribution of $1.5 million and $16 million in cash.
OCI operates a trona mine and refining plant outside of Green River, and celebrated its 50th anniversary
OCI Wyoming LP is a subsidiary of OCI Company Ltd., a Korean-based global chemical company. NRP will have three members on the seven-member committee governing the partnership.
"We are looking forward to a great partnership with OCI," said Nick Carter, president and COO of Natural Resource Partners. "With the acquisition of this interest in trona, we have taken another significant step in diversifying our revenues."
He added that having varying resources under their belt has long been a vision of the company.
"In the past six years we have made a concerted effort to increase our exposure to a variety of minerals including aggregates/industrial minerals and oil and gas," he said, pointing out that the diversity should add to the company's stability.
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, Texas, with its operations headquarters in Huntington, W.V. NRP is principally engaged in the business of owning natural resource assets, with stakes primarily in coal, aggregate and oil and gas reserves across the United States that generate royalty income.
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