Birketts, has advised the shareholders of Brineflow Limited on a partial sale to HELM AG to create a joint venture that will ensure the United Kingdom maintains security of supply for nitrogen fertilisers at a time of international uncertainty in global nutrition and food markets.
Brineflow was demerged from the Great Yarmouth based business J & H Bunn Limited as part of a previous larger transaction also advised by Birketts in 2011. The company operates from modern fertiliser terminals in Great Yarmouth and Sunderland. It is currently commissioning Phase 2 of one of Europe’s largest deep-water liquid fertiliser terminals at the Port of Sunderland capable of receiving some of the largest ocean-going tanker vessels.
HELM AG is based in Hamburg and is a producer of fertiliser with extensive liquid nitrogen manufacturing capabilities in Trinidad and can ship large vessels to the British market from an area unconstrained by European gas shortages.
The joint venture brings together two family owned companies whose shareholders have traded with each other for nearly forty years. The combination of HELM’s strategic production capability and Brineflow’s ability to conveniently address 90% of the UK’s arable production areas represents a significant and important piece of UK Supply Chain infrastructure for fertilisers which are the lifeblood of the entire food chain.
The Birketts team was led by Adrian Possener Partner in the Corporate Team, supported by Macauley Alsford (Corporate), Emily Seago (Corporate), Lucy Easey (Corporate), Lorraine Porter (Corporate), Sam Greenhalgh (Employment), Ben Lewins (Employment), Bhargav Trivedi (Commercial Property), Kristian Nelson (Commercial Property), Karl Pocock (Tax), Robbie Watson (Tax), Lisa Hayward (Employee Incentives), Lottie Fletcher (Banking & Finance), Maisie Lee (Property Disputes) and Selina Walker (Probate).
Mills & Reeve London and Cambridge advised HELM AG.
On the joint venture, Birketts’ Adrian Possener commented: “We are extremely pleased to have advised Brineflow on its successful joint venture with HELM AG, raising the profile and network of Brineflow while ensuring their Nitrasol fertilisers become available to a wider customer base. It is an excellent opportunity for the expansion of Brineflow, which is good news for farmers and others locally and nationally”.
John Fuller, Brineflow Chairman added: “We are delighted with the result of the agreement and the opportunity to address global markets more easily in a period of significant change in the fertiliser industry. It was a pleasure working with Adrian and his team who have provided strategic advice for many years and supported us once again to bring a transaction to completion”.
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