OVERLAND PARK, Kan., Jan 10, 2011 (BUSINESS WIRE) --
Compass Minerals (NYSE: CMP) has acquired Big Quill Resources Inc.,
Canada's leading producer of sulfate of potash, in an all-cash
transaction valued at 56 million Canadian dollars (US$56.3 million),
subject to customary post-closing adjustments. Located on Big Quill Lake
near Wynyard, Saskatchewan, Big Quill Resources produces high-purity
sulfate of potash (SOP) for non-agricultural specialty applications as
well as for nutrients used by growers of high-value crops and turf.
"Big Quill is an innovative, entrepreneurial business with unique
production capabilities, technical expertise and non-seasonal
applications that will both broaden and strengthen Compass Minerals'
specialty fertilizer segment," said Angelo Brisimitzakis, Compass
Minerals president and CEO. "We expect this acquisition to be
immediately accretive. In addition, we plan to expand Big Quill's
production and sales of high-value, specialty products over time."
The Wynyard site, with an annual capacity of approximately 40,000 short
tons, produces much of its SOP by extracting naturally occurring sulfate
from the brine of Big Quill Lake and combining it with potassium
chloride purchased through a very long-term, advantaged supply
agreement. Big Quill's 2010 revenues are expected to be approximately
CA$23 million with EBITDA of approximately CA$7 million. Compass
Minerals funded the purchase with cash on hand. For more information,
please see the company's presentation at www.CompassMinerals.com/presentation.
About Compass Minerals
Based in the Kansas City metropolitan area, Compass Minerals is a
leading producer of minerals, including salt, sulfate of potash
specialty fertilizer and magnesium chloride. The company provides
highway deicing salt to customers in North America and the United
Kingdom and specialty fertilizer to growers worldwide. Compass Minerals
also produces consumer deicing and water conditioning products,
ingredients used in consumer and commercial foods, and other
mineral-based products for consumer, agricultural and industrial
applications. Compass Minerals also provides records management services
to businesses throughout the U.K.
This press release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.These
statements are based on the Company's current expectations and involve
risks and uncertainties that could cause the Company's actual results to
differ materially. The differences could be caused by a number of
factors including those factors identified in the "Risk Factors"
sections of our Annual and Quarterly Reports on Forms 10-K and 10-Q. The
Company undertakes no obligation to update any forward-looking
statements made in this press release to reflect future events or
developments.
SOURCE: Compass Minerals
Compass Minerals
Rodney L. Underdown, 913-344-9395
Chief Financial Officer
or
Peggy Landon, 913-344-9315
Director of Investor Relations and Corporate Communications