OVERLAND PARK, Kan.--(BUSINESS WIRE)--Oct. 3, 2016--
Compass Minerals (NYSE: CMP) today announced it has completed the
purchase of all remaining interest in Produquímica Indústria e Comércio
S.A. (Produquímica), one of Brazil’s leading manufacturers and
distributors of specialty plant nutrients. As previously disclosed, the
acquisition is expected to add $0.12 to $0.15 to earnings per share in
2016, excluding any purchase accounting adjustments.
“With this acquisition complete, Compass Minerals has delivered on a key
component of our growth strategy. We have expanded the geographic scope
of our operations into one of the world’s most important agriculture
markets, broadened our portfolio of specialty plant nutrition products,
and reduced our dependency on winter weather,” said Fran Malecha,
Compass Minerals president and CEO. “I am delighted to officially
welcome all of the employees and associates of Produquímica to Compass
Minerals and look forward to the growth we can achieve as one company.”
Compass Minerals purchased 35 percent of Produquímica in December 2015.
Total consideration for the remainder of Produquímica was approximately
$465 million (based on a Brazilian Real-to-US$ exchange rate of
R$3.25/US$1.00). This includes the purchase of equity valued at $328
million based on Produquímica’s estimated 2016 earnings, subject to
customary, post-closing adjustments, and the assumption of approximately
$137 million of net debt. The company expects to retire a portion of
Produquímica’s debt during the fourth quarter of 2016.
Based in São Paulo, Brazil, Produquímica generated approximately R$1.2
billion in net revenue and R$198 million in EBITDA* as of the 12 months
ending June 30, 2016. Produquímica operates two primary businesses –
agricultural productivity and chemical solutions. The agricultural
productivity division manufactures and distributes a broad offering of
specialty plant nutrition solution-based products. These include
micronutrients, controlled release fertilizers, and other specialty
supplements used in direct soil and foliar applications, as well as
through irrigation systems and for seed treatment. Produquímica also
manufactures and markets specialty chemicals, primarily for the water
treatment industry and for use in other industrial processes in Brazil.
Both businesses are supported by robust research and development
capabilities and a strong technical sales force, which have helped fuel
Produquímica’s revenue and earnings growth. For the period from 2011 to
2015, Produquímica’s net sales and EBITDA* grew at 16 percent and 19
percent compounded annual growth rates, respectively.
Additional details regarding the transaction can be found in a Form 8-K
the company filed today with the U.S. Securities and Exchange Commission.
*Earnings before interest, taxes, depreciation and amortization.
About Compass Minerals
Compass Minerals is a leading provider of essential minerals that solve
nature’s challenges, including salt for winter roadway safety and other
consumer, industrial and agricultural uses, and specialty plant
nutrition minerals that improve the quality and yield of crops. Named
one of Forbes’ 100 Most Trustworthy Companies in America in 2016 and
2015, Compass Minerals’ mission is to be the best essential minerals
company by delivering where and when it matters. The company produces
its minerals at locations throughout the U.S. and Canada and in the U.K.
For more information about Compass Minerals and its products, please
visit www.compassminerals.com.
This press release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including without limitation statements about the expected additions to
earnings per share and the timing and amount of debt retirement. The
company uses words such as “may,” “would,” “could,” “should,”
“will,” “likely,” “expect,” “anticipate,” “believe,” “intend,” “plan,”
“forecast,” “outlook,” “project,” “estimate” and similar expressions
suggesting future outcomes or events to identify forward-looking
statements or forward-looking information. 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 foreign
exchange rates, the risk that the acquisition of Produquímica could
disrupt the plans and operations of the company, Produquímica or both,
and the risk that the company may not realize the expected financial and
other benefits from the acquisition. For further information on risks
and uncertainties that may affect the company’s business, see the “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” sections of the company’s Annual
Report on Form 10-K for the year ended December 31, 2015, and its
Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016 and
June 30, 2016, filed with the SEC. The company undertakes no obligation
to update any forward-looking statements made in this press release to
reflect future events or developments. Because it is not possible to
predict or identify all such factors, this list cannot be considered a
complete set of all potential risks or uncertainties.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161003006418/en/
Source: Compass Minerals
Compass Minerals
Investor Contact
Theresa L.
Womble, +1-913-344-9362
Director of Investor Relations
womblet@compassminerals.com
or
Media
Contact
Tara Hart, +1-913-344-9319
Manager of Corporate
Affairs
MediaRelations@compassminerals.com