ICL to Obtain South American Plant Nutrition Business enterprise from Compass Minerals

Acquisition positions ICL as Brazil’s primary specialty plant nutrition firm

ICL (NYSE: ICL) (TASE: ICL), a main global specialty minerals and specialty substances firm, today declared it has entered into a definitive agreement to obtain Compass Minerals América do Sul S.A., which incorporates the South American Plant Diet business of Compass Minerals – following a planned carve-out of the existing water treatment method and chemical compounds organizations – for somewhere around R$2,207 million (~US$402 million, based on a Brazilian real-to-U.S. dollar trade amount of R$5.4951/US$1.00). This sum consists of the assumption of close to R$600 million (~US$109 million) of web personal debt and is subject to customary post-closing changes. In addition, the transaction consists of an earnout of up to approximately R$88 million (~US$16 million).

The South American Plant Nutrition business is the primary specialty plant diet company in Brazil and gives a broad assortment of solutions for plant nutrition and stimulation, soil cure, seed remedy and plant well being, masking all critical Brazilian crops. Its product or service portfolio features improved performance fertilizers and controlled-release fertilizers, soil and foliar micronutrients, secondary vitamins and minerals, biostimulants, and adjuvants. The enterprise has an current existence in 25 out of 26 Brazilian states and serves extra than 32,000 farms instantly and indirectly, with immediate-to-farm revenue accounting for roughly 50{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} of whole gross sales.

“This transaction, collectively with our latest acquisition of Fertiláqua in Brazil and our current specialty plant nutrition small business there, will posture ICL as the leading specialty plant diet business in Brazil, one particular of the world’s swiftest rising agriculture marketplaces. This vital up coming action provides on our said system of acquiring leadership positions in superior-advancement specialty plant nourishment marketplaces, these kinds of as Brazil, and also accelerates our progress toward extended-phrase international management for our Progressive Ag Alternatives division,” explained Raviv Zoller, president and CEO of ICL.

“Also, this will drastically increase ICL’s item portfolio and profitability, even though supplying further more seasonal equilibrium in between the Northern and Southern hemispheres. In addition, this acquisition is anticipated to deliver considerable business and operational synergy chances through the combined strengths of ICL, Fertiláqua and the sector main South American Plant Nourishment business enterprise of Compass Minerals and will also allow us to produce the important mass we have been seeking in Brazil. We glance forward to welcoming the South American Plant Nourishment workforce and getting them join our existing workforce in Brazil,” concluded Zoller.

Upon completion of the acquisition, ICL expects it will be capable to offer you the broadest and most advanced portfolio of plant nutrition products and solutions masking the overall agricultural price chain. Its expanded consumer base will span from B2B suppliers – these types of as plant nutrition suppliers and bulk blenders – to B2C associates – these as ag-input vendors, co-operatives and huge farms. The combined firms will leverage a well-proven asset base, with a full of 8 output sites and a sizable salesforce providing entire commercial coverage for all agricultural areas in Brazil.

“Though the South American Plant Nutrition enterprise is not portion of our forward-wanting system, we go on to consider the upcoming is vivid for these effective property,” reported Kevin S. Crutchfield, president and CEO of Compass Minerals. “We are as a result delighted to see this business enterprise, and additional importantly the potent staff of pros who operate it, locate these kinds of a strategic property with ICL.”

The acquisition is predicted to close by the third quarter of 2021, subject matter to the completion of the carve-out of Compass Mineral’s South American water therapy and chemical compounds firms and the fulfilment of customary closing situations, such as regulatory approvals.

About Compass Minerals América do Sul S.A.

Launched in 1965 as Produquímica, the company is the top specialty plant diet participant in Brazil and features a broad selection of answers for plant diet and stimulation, seed treatment method, and plant wellness throughout all important Brazilian crops, such as soybeans, corn, coffee, sugarcane, cotton, fruits, and vegetables. The firm’s product portfolio involves improved effectiveness fertilizers and controlled-release fertilizers, soil and foliar micronutrients, secondary vitamins and minerals (calcium, magnesium and sulfur), biostimulants, and adjuvants, as nicely as animal nutrition and plant nourishment ingredients for B2B clients.

The firm has a presence in 25 out of 26 Brazilian states and serves a lot more than 2,000 farms instantly and much more than 30,000 farms indirectly, by also serving more than 250 ag-input merchants and co-operatives. Headquartered in São Paulo, the company employs more than 1,000 people and operates 6 manufacturing sites and just one study and growth heart.

Whole yr 2020 web earnings was roughly R$1,442 million (~US$284 million), with EBITDA of close to R$235 million (~US$46 million), excluding the drinking water cure and substances enterprises(1). These outcomes reveal solid top-line expansion and replicate a compounded annual development charge of somewhere around 10{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4}, given that the small business was acquired by Compass Mineral in 2015 and 2016.

About ICL

ICL Group Ltd. is a major worldwide specialty minerals and chemicals corporation that makes impactful alternatives for humanity’s sustainability worries in world-wide foods, agriculture, and industrial marketplaces. ICL leverages its one of a kind bromine, potash and phosphate assets, its passionate crew of gifted staff members, and its powerful target on R&D and technological innovation to generate expansion across its conclude markets. ICL shares are dually mentioned on the New York Inventory Trade and the Tel Aviv Inventory Trade (NYSE and TASE: ICL). The company employs about 11,000 individuals around the world, and its 2020 revenues totaled approximately $5. billion.

About Compass Minerals

Compass Minerals (NYSE: CMP) is a top supplier of important minerals focused on properly providing where and when it issues to support remedy nature’s worries for clients and communities. Its salt goods support preserve roadways protected throughout winter season climate and are employed in various other buyer, industrial and agricultural applications. Its plant nourishment organization manufactures an modern and assorted portfolio of items that increase the good quality and produce of crops, even though supporting sustainable agriculture. Furthermore, its specialty chemical company serves the water remedy marketplace and other industrial procedures. The business operates 21 creation and packaging facilities with extra than 3,000 personnel all through the U.S., Canada, Brazil and the U.K. Go to compassminerals.com for much more information and facts about the enterprise and its products and solutions.

For a lot more information and facts, visit ICL’s web page at www.icl-group.com.

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(1) Quantities mirror typical Brazilian True to U.S. Greenback exchange level for 2020.

Forward Looking Statements

This announcement consists of statements that represent forward‑looking statements, numerous of which can be recognized by the use of forward‑looking words such as “anticipate,” “believe,” “could,” “assume,” “ought to,” “prepare,” “intend,” “estimate” and “potential,” amid other individuals.

Ahead-searching statements surface in a range of locations in this push launch and contain, but are not minimal to, statements regarding the company’s intent, perception or latest anticipations. Ahead-hunting statements are primarily based on management’s beliefs and assumptions and on information and facts now accessible to administration. Such statements are subject to dangers and uncertainties, and genuine results may well differ materially from these expressed or implied in the ahead-searching statements thanks to numerous variables, such as, but not restricted to: the company’s potential to fulfill the closing situations for the transaction on a timely basis or at all the expected result of the transaction on the crop nourishment small business ICL’s strategic aim in Brazil and believed accretion, revenue, synergy capture and other related metrics as well as, ICL’s expectations and assumptions relating to the time necessary to satisfy the problems to the closing of the transaction, such as the regulatory approvals in connection therewith and synergy capture. Though ICL thinks the anticipations and assumptions on which this sort of forward-seeking statements are based are affordable, undue reliance should not be put on the ahead-searching statements simply because ICL can give no assurance they will establish to be suitable.

The predicted timeline for completion of the transaction could transform for a variety of causes, such as the lack of ability to protected required regulatory approvals in the time assumed or the want for added time to satisfy the ailments to the completion of the transaction. Other variables that could bring about genuine results to differ materially from people in the forward-hunting statements incorporate, but are not restricted to, estimates, forecasts and statements as to management’s expectations with respect to, amid other things, small business and money prospective customers, fiscal multiples and accretion estimates, potential trends, plans, strategies, positioning, targets and expectations, failure to complete the transaction as contemplated and the skill to productively integrate the new company into the current enterprise in an productive fashion, typical financial, market and company situations, weather conditions conditions, crop selling prices, the source and demand from customers and price tag degrees for our important products and merchandise affiliated with the plant nutrition enterprise, governmental and regulatory requirements and steps by governmental authorities, which includes adjustments in government policy, modifications in environmental, tax and other legislation or regulations and the interpretation thereof. As a consequence of the foregoing, visitors need to not location undue reliance on the forward-hunting statements contained in this press release about the timing of the transaction, or other additional certain pitfalls and uncertainties dealing with ICL, these kinds of as those people set forth in the “Risk Elements” area of its Yearly Report on Type 20-F submitted on March 2, 2021, as these kinds of risk variables may possibly be up-to-date from time to time in its Present-day Stories on Variety 6-K and other filings ICL would make with the U.S. Securities and Trade Fee from time to time.

Forward-looking statements refer only to the day they are designed, and the business does not undertake any obligation to update them in gentle of new information or upcoming developments or to publicly release any revisions to these statements in get to replicate later on events or situation or to mirror the occurrence of unanticipated events.

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