Compass Minerals buying 35 percent stake in Brazilian company

 

Courtesy of Compass Minerals
Courtesy of Compass Minerals

Overland Park, Kan.-based Compass Minerals will pay approximately $120.7 million for 35 percent of a Brazilian company that makes and distributes specialty plant nutrients as part of an agreement that would allow Compass to acquire the whole company by 2019.

Compass, which produces salt, plant nutrients and magnesium chloride for a variety of industrial, agricultural and other uses, expects to complete the deal with Sao Paulo-based Produquimica Industria e Comercio SA by the end of December.

The Brazilian company has about 1,400 employees and is expected to generate $1 billion in net revenue in 2015, according to a Compass news release.

“Produquimica is a good strategic fit with our existing plant nutrition business, and this investment is an important part of our growth plan,” Fran Malecha, president and chief executive of Compass, said in the release.

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