Compass Minerals International Inc of Overland Park, KS has signed a definitive agreement to purchase a 35% interest in Produquimica Industria e Comercio SA, one of Brazil’s leading manufacturers and distributors of specialty plant nutrients. The all-cash transaction is valued at R$452.4 million (US$115.9 million) and includes an option to buy full ownership by 2019. Produquimica is expected to generate approximately R$1.0 billion (US$252.6 million) in 2015.
Fran Malecha, Compass Mineral’s CEO, said, “Produquimica has a long history in Brazil and strong prospects for continued growth and margin expansion. Its wide range of specialty plant nutrients, application technologies, and extensive distribution network, are uniquely positioned to meet growers need for yield enhancement.”
To assist with funding the deal, Compass Minerals and certain of its subsidiaries have entered into a US$100 million incremental term loan as part of an amendment to its existing senior secured credit facility.
IC Potash Corp (ICP) of Toronto, ON announces that Cartesian Capital Group LLC of New York, NY has agreed to make a second strategic investment of up to US$45 million in ICPs subsidiary, Intercontinental Potash Corp (ICPUSA). ICPUSA owns the Ochoa sulfate of potash (SOP) project in Lea County, NM. The Ochoa project is designed to produce 714,400 tons/year of SOP.
Randy Foote, ICP’s CEO, said, “We are extremely pleased that IC Potash and the Ochoa project have received a second vote of confidence from Cartesian Capital group. This strategic investment will allow ICP to move the project to the start of construction and also create the opportunity for ICP, working with Cartesian, to move forward to find a strategic partner to assist in funding the construction of the project.”