Abu Dhabi firm acquires Wengfu assets across five ports, targeting $23m EBITDA by 2030
Abu Dhabi: Abu Dhabi-based Fertiglobe has completed its acquisition of Wengfu Australia’s distribution assets, marking a significant expansion into the Asia-Pacific market as the world’s largest seaborne urea exporter strengthens its downstream presence.
While the deal amount was not disclosed, Fertiglobe said in May this year that the purchase price would be calculated based on recoverable working capital and inventory, plus an $8 million premium.
The deal gives Fertiglobe control of strategically located assets spanning five ports and eight warehouses across south-east Australia, with the capacity to distribute up to 1.1 million tonnes of fertilisers annually to over 200 customers.
"We are pleased to complete the acquisition of Wengfu Australia's distribution assets, a key step in advancing Fertiglobe's 'Grow 2030 Strategy' and supporting our pillar of enhancing customer proximity," said Ahmed El-Hoshy, CEO of Fertiglobe.
The transaction aligns with Fertiglobe's recently announced growth strategy and is expected to generate incremental annual EBITDA of $23 million by 2030. The company financed the purchase through pre-arranged short-term facilities, which will be reimbursed within four months.
Prior to the acquisition, Fertiglobe supplied around 600,000 tonnes of urea annually to Australia, with Wengfu serving as its largest customer in the country. The newly established Fertiglobe Australia subsidiary now positions the company to significantly scale up volumes in one of the world's fastest-growing agricultural markets.
"This exciting new chapter will unlock new opportunities for our business and benefit our customers through access to a strong global ecosystem," said Paul Osborne, recently appointed CEO of Fertiglobe Australia.
The acquisition has a minimal financial impact, with no effect on Fertiglobe's dividend distribution capability and a limited impact on its net debt-to-EBITDA ratio, which stood at 1.2 times as of June 2025.
The move accelerates Fertiglobe's geographical diversification beyond its traditional MENA stronghold, where it operates production facilities in the UAE, Egypt, and Algeria with a combined capacity of 6.6 million tonnes.
El-Hoshy said the deal "diversifies our footprint, strengthens our resilience against seasonality and broadens our portfolio to include non-nitrogen fertilisers." Fertiglobe also clarified the transaction received all necessary regulatory and legal approvals before completion.
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