Compass Minerals, Overland Park, Kan., reported on March 20 that it has signed a definitive agreement to acquire Wolf Trax Inc., a micronutrient company headquartered in Winnipeg, Manitoba. The all-cash transaction is valued at C$95 million (US$85 million), subject to customary post-closing adjustments. Compass Minerals will fund the purchase with cash on hand.
“Wolf Trax® brand products are well recognized by fertilizer customers for the differentiated technology they bring to the application of micronutrients,” said Fran Malecha, Compass Minerals president and CEO. “This acquisition will position us for future growth with new products that serve a greater diversity of crops and geographies in a fast-growing segment of the plant nutrition market.”
Compass Minerals said Wolf Trax brand micronutrients are formulated to coat and adhere to each prill of dry fertilizer, providing a more precise and effective way of delivering nutrients such as boron, zinc, copper, and manganese directly to the plant. Wolf Trax generated sales of approximately C$20 million in 2013.
“Both Wolf Trax products and Compass Minerals’ sulfate of potash products offer customers a compelling value proposition,” said Malecha. “With Wolf Trax’s strong product development and value-added sales capabilities, we will become the go-to source for premium plant nutrition products.”
In addition to sulfate of potash specialty fertilizer which it sells to customers worldwide, Compass Minerals also produces magnesium chloride and salt, including highway deicing salt marketed to customers in North America and the United Kingdom. The company 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.