Shareholders of Poland’s Grupa Azoty have approved the acquisition of specialty fertilizer group Compo Expert from UK-headquartered private equity firm XIO Group, for a sum not exceeding €235 million.

The transaction, which has been approved by antitrust authorities in Turkey, Germany and Austria, is expected to close between now and the first quarter of 2019.

Headquartered in Münster, Germany, with main production sites in Krefeld, Germany, and Vall d’Uixo, Spain, Compo Export  makes advanced solutions for controlled-release fertilizers and slow-release fertilizers, fertigation and foliar fertilizers, liquid fertilizers and biostimulants, as well as specialty nitrogen, phosphorus and potassium (NPK) fertilizers with a  high nutrient concentration.

Grupa Azoty said the acquisition will open new opportunities to diversify its business, both in terms of geographic coverage and product offering, as well as reduce its exposure to commodity cycles and sensitivity to natural gas price fluctuations.

The Warsaw-based company is Poland’s leading producer of fertilizers and chemicals and the second-largest EU-based manufacturer of nitrogen and compounds fertilizers. Grupa Azoty also produces a range of chemicals and polymers, including melamine, caprolactam, oxo-alcohols, plasticizers, nylon and titanium white.