Compass Minerals To Divest South America Specialty Plant Nutrition Business To ICL Brasil

(RTTNews) - Essential minerals firm Compass Minerals (CMP) announced Wednesday it has entered into a definitive agreement to sell its South America specialty plant nutrition business to ICL Brasil Ltda., a subsidiary of ICL Group.

The transaction agreement provides for total potential gross cash proceeds of approximately $418 million based on current exchange rates.

Under the terms of the agreement, Compass Minerals will sell its South America specialty plant nutrition business for approximately R$2.21 billion, payable at closing and subject to adjustments for net debt and working capital.

An additional earn-out consideration of up to approximately R$88 million is also payable in 2022, calculated on a sliding-scale

Compass Minerals intends to prioritize the use of proceeds to pay down debt in addition to other corporate purposes.

The transaction is expected to close in the third quarter of 2021, subject to customary closing conditions and required antitrust approval in Brazil.