ICL to Get South American Plant Diet Enterprise from Compass Minerals

TEL AVIV, Israel–(Business enterprise WIRE)–Mar 24, 2021–

ICL (NYSE: ICL) (TASE: ICL), a foremost world specialty minerals and specialty substances corporation, these days announced it has entered into a definitive settlement to purchase Compass Minerals América do Sul S.A., which contains the South American Plant Nutrition business enterprise of Compass Minerals – after a prepared carve-out of the current drinking water treatment method and chemical substances companies – for around R$2,207 million (~US$402 million, based on a Brazilian real-to-U.S. greenback trade fee of R$5.4951/US$1.00). This volume includes the assumption of close to R$600 million (~US$109 million) of net credit card debt and is issue to customary put up-closing changes. In addition, the transaction includes an earnout of up to about R$88 million (~US$16 million).

The South American Plant Nourishment business is the primary specialty plant nourishment organization in Brazil and gives a broad array of alternatives for plant diet and stimulation, soil treatment, seed remedy and plant well being, covering all essential Brazilian crops. Its product portfolio consists of increased performance fertilizers and managed-launch fertilizers, soil and foliar micronutrients, secondary vitamins and minerals, biostimulants, and adjuvants. The business has an present presence in 25 out of 26 Brazilian states and serves more than 32,000 farms right and indirectly, with direct-to-farm income accounting for close to 50{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} of whole income.

“This transaction, together with our current acquisition of Fertiláqua in Brazil and our present specialty plant nourishment business enterprise there, will posture ICL as the main specialty plant nourishment firm in Brazil, a single of the world’s fastest rising agriculture markets. This important up coming stage delivers on our mentioned method of reaching management positions in higher-development specialty plant nutrition marketplaces, these as Brazil, and also accelerates our development towards very long-phrase global management for our Revolutionary Ag Alternatives division,” claimed Raviv Zoller, president and CEO of ICL.

“Also, this will noticeably develop ICL’s item portfolio and profitability, even though providing additional seasonal harmony amongst the Northern and Southern hemispheres. In addition, this acquisition is expected to make sizeable professional and operational synergy opportunities by way of the merged strengths of ICL, Fertiláqua and the marketplace major South American Plant Diet small business of Compass Minerals and will also let us to supply the critical mass we have been looking for in Brazil. We search forward to welcoming the South American Plant Nourishment team and getting them sign up for our present group in Brazil,” concluded Zoller.

On completion of the acquisition, ICL expects it will be able to offer you the broadest and most highly developed portfolio of plant nourishment products and solutions masking the whole agricultural price chain. Its expanded consumer base will span from B2B vendors – these kinds of as plant diet companies and bulk blenders – to B2C companions – this sort of as ag-enter retailers, co-operatives and huge farms. The combined enterprises will leverage a perfectly-set up asset foundation, with a complete of eight output websites and a sizable salesforce delivering comprehensive business protection for all agricultural areas in Brazil.

“While the South American Plant Diet small business is not section of our forward-hunting method, we continue on to feel the upcoming is vivid for these effective belongings,” mentioned Kevin S. Crutchfield, president and CEO of Compass Minerals. “We are for that reason happy to see this organization, and a lot more importantly the sturdy workforce of professionals who function it, uncover this sort of a strategic household with ICL.”

The acquisition is expected to shut by the 3rd quarter of 2021, topic to the completion of the carve-out of Compass Mineral’s South American water procedure and chemical compounds firms and the fulfilment of customary closing ailments, together with regulatory approvals.

About Compass Minerals América do Sul S.A.

Founded in 1965 as Produquímica, the company is the top specialty plant nutrition player in Brazil and features a wide range of remedies for plant nourishment and stimulation, seed treatment method, and plant wellbeing throughout all vital Brazilian crops, like soybeans, corn, espresso, sugarcane, cotton, fruits, and greens. The company’s merchandise portfolio contains enhanced efficiency fertilizers and managed-release fertilizers, soil and foliar micronutrients, secondary nutrition (calcium, magnesium and sulfur), biostimulants, and adjuvants, as very well as animal nutrition and plant nutrition substances for B2B clients.

The business has a existence in 25 out of 26 Brazilian states and serves a lot more than 2,000 farms immediately and much more than 30,000 farms indirectly, by also serving additional than 250 ag-input vendors and co-operatives. Headquartered in São Paulo, the organization employs far more than 1,000 people today and operates six manufacturing websites and just one investigation and enhancement heart.

Comprehensive calendar year 2020 net profits was somewhere around R$1,442 million (~US$284 million), with EBITDA of close to R$235 million (~US$46 million), excluding the drinking water treatment method and chemicals enterprises (1). These benefits show strong major-line expansion and replicate a compounded annual growth rate of somewhere around 10{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4}, because the enterprise was acquired by Compass Mineral in 2015 and 2016.

About ICL

ICL Team Ltd. is a top world-wide specialty minerals and substances organization that generates impactful solutions for humanity’s sustainability challenges in worldwide food stuff, agriculture, and industrial markets. ICL leverages its distinctive bromine, potash and phosphate methods, its passionate staff of proficient employees, and its strong focus on R&D and technological innovation to travel progress throughout its stop markets. ICL shares are dually mentioned on the New York Inventory Trade and the Tel Aviv Stock Trade (NYSE and TASE: ICL). The organization employs more than 11,000 individuals around the globe, and its 2020 revenues totaled close to $5. billion.

About Compass Minerals

Compass Minerals (NYSE: CMP) is a main provider of critical minerals centered on safely offering the place and when it matters to aid remedy nature’s troubles for shoppers and communities. Its salt items aid retain roadways safe during wintertime weather and are applied in a lot of other purchaser, industrial and agricultural applications. Its plant nourishment small business manufactures an modern and numerous portfolio of solutions that improve the top quality and produce of crops, though supporting sustainable agriculture. Also, its specialty chemical small business serves the h2o therapy sector and other industrial procedures. The company operates 21 production and packaging services with extra than 3,000 personnel all through the U.S., Canada, Brazil and the U.K. Stop by compassminerals.com for a lot more information and facts about the firm and its merchandise.

For extra data, stop by ICL’s web page at www.icl-team.com.

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(1) Quantities reflect normal Brazilian Authentic to U.S. Greenback exchange level for 2020.

Ahead Wanting Statements

This announcement consists of statements that represent forward‑looking statements, several of which can be discovered by the use of forward‑looking words and phrases these types of as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” amid other individuals.

Ahead-searching statements show up in a number of sites in this push release and consist of, but are not limited to, statements regarding the company’s intent, perception or existing anticipations. Ahead-wanting statements are dependent on management’s beliefs and assumptions and on details now available to administration. These kinds of statements are topic to hazards and uncertainties, and real outcomes might vary materially from these expressed or implied in the ahead-wanting statements due to many variables, together with, but not confined to: the company’s means to satisfy the closing problems for the transaction on a well timed basis or at all the expected impact of the transaction on the crop nutrition business ICL’s strategic aim in Brazil and approximated accretion, revenue, synergy capture and other associated metrics as very well as, ICL’s anticipations and assumptions about the time needed to fulfill the problems to the closing of the transaction, together with the regulatory approvals in link therewith and synergy seize. Though ICL thinks the expectations and assumptions on which such ahead-on the lookout statements are based are affordable, undue reliance should not be positioned on the forward-seeking statements simply because ICL can give no assurance they will establish to be appropriate.

The expected timeline for completion of the transaction could transform for a variety of factors, such as the incapacity to safe important regulatory approvals in the time assumed or the want for additional time to fulfill the situations to the completion of the transaction. Other components that could bring about true outcomes to vary materially from individuals in the forward-searching statements include, but are not confined to, estimates, forecasts and statements as to management’s anticipations with respect to, amid other points, enterprise and monetary prospective customers, economical multiples and accretion estimates, foreseeable future traits, ideas, strategies, positioning, aims and anticipations, failure to comprehensive the transaction as contemplated and the means to effectively integrate the new company into the present enterprise in an effective fashion, typical economic, market and company situations, weather ailments, crop charges, the source and desire and selling price concentrations for our important solutions and goods affiliated with the plant nourishment organization, governmental and regulatory needs and actions by governmental authorities, such as adjustments in govt policy, alterations in environmental, tax and other rules or regulations and the interpretation thereof. As a end result of the foregoing, audience really should not put undue reliance on the forward-hunting statements contained in this press release about the timing of the transaction, or other extra precise dangers and uncertainties going through ICL, these as individuals set forth in the “Risk Factors” section of its Annual Report on Form 20-F filed on March 2, 2021, as this sort of danger things may perhaps be updated from time to time in its Existing Reports on Kind 6-K and other filings ICL can make with the U.S. Securities and Trade Commission from time to time.

Forward-hunting statements refer only to the day they are manufactured, and the firm does not undertake any obligation to update them in light-weight of new details or long term developments or to publicly release any revisions to these statements in get to reflect later on events or instances or to reflect the prevalence of unanticipated occasions.

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PUB: 03/24/2021 05:00 AM/DISC: 03/24/2021 05:00 AM