Project Overview
Alpharma owned an animal health fermentation manufacturing facility in Hannibal, Missouri, located within a larger BASF complex. When the facility became surplus, Alpharma was required either to find a buyer that would continue operating the plant or remove it and return the site to greenfield condition.
Phoenix Equipment purchased the facility and assumed that obligation as part of the transaction. If an operating buyer could not be found, Phoenix would be responsible for dismantling the plant and converting the site to greenfield. The approximately $2.5 million project ran from June 2006 through September 2007.
The Challenge
The challenge was to find a buyer willing to acquire and operate the complete fermentation facility within an existing BASF complex. If that effort failed, Phoenix would be responsible for dismantling the plant and returning the site to greenfield condition, so the project carried a clear downside obligation as well as a potential reuse outcome.
Complete Plant Sale for Continued Operation
Rather than dismantling the fermentation facility, Phoenix negotiated the sale of the complete plant to a new owner for continued operation in place. The buyer subsequently entered into a long-term lease agreement with BASF, allowing the existing manufacturing facility to remain at the site and return to productive use without the plant being dismantled or relocated.
Project Outcome
Alpharma avoided the need to dismantle the fermentation plant and return the site to greenfield condition. Phoenix sold the complete facility to a new owner, which entered into a long-term lease with BASF and continued operating the plant in place.
Project Highlights
- Client: Alpharma
- Location: Hannibal, Missouri
- Facility: Animal Health Fermentation Manufacturing Plant (Stock # 133)
- Site: Located Within a Larger BASF Complex
- Phoenix Scope: Plant Acquisition, Buyer Identification and Complete Facility Sale
- Phoenix Obligation: Greenfield Site Conversion if No Operating Buyer Was Found
- Final Disposition: Complete Facility Sold for Continued Operation In Place
- New Owner: Entered Into a Long-Term Lease With BASF
- Project Timeframe: June 2006 – September 2007
- Project Value: Approximately $2.5 Million
- Owner Outcome: Avoided Plant Dismantlement and Greenfield Conversion
Avoiding Greenfield Conversion Through Complete Plant Reuse
The Alpharma project gave Phoenix responsibility for both possible outcomes: finding a viable operator or clearing the site if no buyer emerged. By securing a buyer for the complete fermentation plant, Phoenix enabled the facility to remain in place and continue operating within the BASF complex, eliminating the need for greenfield conversion.