One of the leading specialty minerals and chemicals company, ICL Group has recently made it to the headlines following its plans of acquiring the South American Plant Nutrition business from Compass Minerals America do Sul S.A., under an outstanding transaction of USD 402 million. Additionally, the transaction also includes an earnout of around USD 16 million.
For the record, the South American Plant Nutrition biz stands out to be one of the top-notch specialty plant nutrition businesses in Brazil and seeks to offer an expansive range of solution for plant stimulation and nutrition, seed treatment and plant health, and soil treatment.
Speculations have it that upon the completion of acquisition, ICL anticipates offering the widest and most advanced portfolio of plant nutrition products encompassing the entire agricultural value chain. Moreover, the combined businesses are likely to make use of a well-established asset base, with a total of 8 production sites and a sizable salesforce offering full commercial coverage for all the agricultural regions in the states of Brazil.
Speaking of the acquisition, President and CEO of ICL, Raviv Zoller quoted that the latest transaction, in line with the company’s recent acquisition of Fertilaqua and its current specialty plant nutrition in the country, would potentially position ICL as the classic pioneer of specialty plant nutrition in Brazil. Besides, the acquisition is also likely to significantly expand the firm’s profitability and product portfolio, while maintain a seasonal balance between the Southern and Northern hemispheres.
Mr. Zoller added that the buyout would further generate significant operational and commercial synergy opportunities through combined strengths of Fertilaqua and ICL.
On the other hand, Kevin S. Crutchfield, CEO and President at Compass Minerals, cited that the company is pleased to see its South American Plant Nutrition business, along with its strong team of professionals, find a strategic home with ICL. He stated that while the plant nutrition business is not a part of its forward-looking strategy, Compass Minerals still continues to believe that the future is bright for these productive assets.