ICL to Obtain South American Plant Nutrition Company from Compass Minerals

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

ICL ( NYSE: ICL) (TASE: ICL ), a leading worldwide specialty minerals and specialty chemical substances organization, nowadays declared it has entered into a definitive arrangement to get Compass Minerals América do Sul S.A., which incorporates the South American Plant Diet enterprise of Compass Minerals – right after a planned carve-out of the current h2o treatment and substances businesses – for approximately R$2,207 million (~US$402 million, centered on a Brazilian true-to-U.S. greenback trade charge of R$5.4951/US$1.00). This total includes the assumption of close to R$600 million (~US$109 million) of web financial debt and is subject to customary write-up-closing adjustments. In addition, the transaction involves an earnout of up to around R$88 million (~US$16 million).

The South American Plant Nourishment business is the top specialty plant nourishment organization in Brazil and offers a broad assortment of options for plant diet and stimulation, soil treatment, seed remedy and plant overall health, masking all essential Brazilian crops. Its product portfolio incorporates increased effectiveness fertilizers and controlled-launch fertilizers, soil and foliar micronutrients, secondary vitamins, biostimulants, and adjuvants. The small business has an present existence in 25 out of 26 Brazilian states and serves far more than 32,000 farms specifically and indirectly, with direct-to-farm sales accounting for somewhere around 50{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} of whole product sales.

“This transaction, with each other with our current acquisition of Fertiláqua in Brazil and our present specialty plant nourishment enterprise there, will place ICL as the main specialty plant nourishment business in Brazil, a single of the world’s fastest rising agriculture markets. This important future stage provides on our mentioned tactic of acquiring leadership positions in higher-development specialty plant nourishment markets, these as Brazil, and also accelerates our development toward extensive-time period global management for our Impressive Ag Methods division,” mentioned Raviv Zoller, president and CEO of ICL.

“Also, this will drastically increase ICL’s solution portfolio and profitability, even though giving even further seasonal equilibrium between the Northern and Southern hemispheres. In addition, this acquisition is envisioned to produce substantial business and operational synergy chances through the put together strengths of ICL, Fertiláqua and the current market top South American Plant Nourishment organization of Compass Minerals and will also allow us to produce the vital mass we have been trying to get in Brazil. We look ahead to welcoming the South American Plant Diet group and having them be a part of our current crew in Brazil,” concluded Zoller.

Upon completion of the acquisition, ICL expects it will be capable to provide the broadest and most advanced portfolio of plant nutrition products and solutions masking the complete agricultural benefit chain. Its expanded purchaser foundation will span from B2B companies – this sort of as plant diet brands and bulk blenders – to B2C associates – these kinds of as ag-input retailers, co-operatives and large farms. The mixed corporations will leverage a perfectly-proven asset base, with a total of eight manufacturing web sites and a sizable salesforce delivering complete business protection for all agricultural areas in Brazil.

“While the South American Plant Diet enterprise is not element of our forward-seeking approach, we continue on to imagine the foreseeable future is vibrant for these successful belongings,” reported Kevin S. Crutchfield, president and CEO of Compass Minerals. “We are as a result pleased to see this company, and additional importantly the solid team of experts who work it, obtain these 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 h2o remedy and substances corporations and the fulfilment of customary closing situations, including regulatory approvals.

About Compass Minerals América do Sul S.A.

Started in 1965 as Produquímica, the business is the primary specialty plant diet participant in Brazil and offers a wide variety of methods for plant diet and stimulation, seed treatment, and plant overall health throughout all crucial Brazilian crops, like soybeans, corn, espresso, sugarcane, cotton, fruits, and greens. The company’s products portfolio features enhanced effectiveness fertilizers and managed-launch fertilizers, soil and foliar micronutrients, secondary nutrition (calcium, magnesium and sulfur), biostimulants, and adjuvants, as perfectly as animal nourishment and plant diet substances for B2B clients.

The enterprise has a presence in 25 out of 26 Brazilian states and serves much more than 2,000 farms right and extra than 30,000 farms indirectly, by also serving additional than 250 ag-input retailers and co-operatives. Headquartered in São Paulo, the corporation employs much more than 1,000 individuals and operates six creation websites and a person exploration and progress center.

Total yr 2020 internet revenue was somewhere around R$1,442 million (~US$284 million), with EBITDA of about R$235 million (~US$46 million), excluding the drinking water cure and substances businesses (1). These outcomes display solid leading-line progress and replicate a compounded yearly advancement level of approximately 10{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4}, because the business was obtained by Compass Mineral in 2015 and 2016.

About ICL

ICL Group Ltd. is a primary world-wide specialty minerals and chemical compounds enterprise that creates impactful methods for humanity’s sustainability difficulties in world-wide food stuff, agriculture, and industrial marketplaces. ICL leverages its distinctive bromine, potash and phosphate sources, its passionate workforce of talented staff members, and its solid concentrate on R&D and technological innovation to generate progress throughout its close markets. ICL shares are dually shown on the New York Inventory Exchange and the Tel Aviv Stock Trade (NYSE and TASE: ICL). The enterprise employs more than 11,000 men and women around the globe, and its 2020 revenues totaled approximately $5. billion.

About Compass Minerals

Compass Minerals (NYSE: CMP) is a foremost company of essential minerals centered on securely offering where and when it matters to aid fix nature’s problems for shoppers and communities. Its salt goods support maintain roadways protected for the duration of winter season weather conditions and are made use of in numerous other client, industrial and agricultural programs. Its plant nutrition small business manufactures an progressive and assorted portfolio of solutions that strengthen the top quality and produce of crops, even though supporting sustainable agriculture. Additionally, its specialty chemical organization serves the drinking water therapy sector and other industrial procedures. The company operates 21 output and packaging facilities with additional than 3,000 staff all through the U.S., Canada, Brazil and the U.K. Check out compassminerals.com for much more data about the enterprise and its solutions.

For much more information and facts, visit ICL’s web site at www.icl-team.com.

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(1) Amounts reflect average Brazilian Serious to U.S. Dollar trade charge for 2020.

Forward Looking Statements

This announcement consists of statements that constitute forward‑looking statements, lots of of which can be determined by the use of forward‑looking phrases this sort of as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among other individuals.

Forward-seeking statements look in a amount of areas in this push launch and include, but are not confined to, statements concerning the company’s intent, perception or latest anticipations. Forward-searching statements are based on management’s beliefs and assumptions and on facts at present offered to management. These statements are subject to threats and uncertainties, and precise results could vary materially from people expressed or implied in the forward-seeking statements owing to various things, including, but not minimal to: the company’s ability to fulfill the closing ailments for the transaction on a timely foundation or at all the anticipated influence of the transaction on the crop diet company ICL’s strategic concentration in Brazil and estimated accretion, sales, synergy seize and other linked metrics as effectively as, ICL’s expectations and assumptions concerning the time important to fulfill the ailments to the closing of the transaction, together with the regulatory approvals in link therewith and synergy capture. Even though ICL believes the anticipations and assumptions on which such ahead-searching statements are dependent are affordable, undue reliance must not be placed on the forward-hunting statements because ICL can give no assurance they will show to be appropriate.

The predicted timeline for completion of the transaction may perhaps improve for a variety of good reasons, which includes the inability to protected necessary regulatory approvals in the time assumed or the will need for further time to fulfill the problems to the completion of the transaction. Other components that could bring about actual effects to vary materially from those people in the ahead-searching statements contain, but are not constrained to, estimates, forecasts and statements as to management’s anticipations with respect to, among the other things, small business and money prospective customers, monetary multiples and accretion estimates, long run traits, strategies, tactics, positioning, objectives and anticipations, failure to comprehensive the transaction as contemplated and the means to successfully integrate the new enterprise into the current small business in an effective manner, basic financial, market and business disorders, climate disorders, crop costs, the supply and desire and value concentrations for our major products and solutions and items connected with the plant nourishment business, governmental and regulatory demands and actions by governmental authorities, like improvements in govt plan, variations in environmental, tax and other rules or regulations and the interpretation thereof. As a result of the foregoing, viewers should not location undue reliance on the ahead-seeking statements contained in this press release regarding the timing of the transaction, or other more precise risks and uncertainties struggling with ICL, these types of as those people set forth in the “Risk Factors” section of its Yearly Report on Type 20-F filed on March 2, 2021, as this sort of chance components may be current from time to time in its Current Studies on Type 6-K and other filings ICL makes with the U.S. Securities and Trade Commission from time to time.

Ahead-searching statements refer only to the date they are manufactured, and the business does not undertake any obligation to update them in gentle of new data or long term developments or to publicly release any revisions to these statements in order to reflect later activities or instances or to replicate the occurrence of unanticipated functions.

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Key word: SOUTH The united states BRAZIL

Field Key word: AGRICULTURE Purely natural Resources MINING/MINERALS

Supply: ICL Group LTD

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PUB: 03/24/2021 02:10 AM/DISC: 03/24/2021 02:10 AM

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