Compass Minerals, Overland Park, Kan., announced on July 1 that it has completed the sale of the company’s South America specialty plant nutrition business to a subsidiary of ICL Group, Tel Aviv (GM March 26, p. 1).
Upon closing, Compass said it received gross sale proceeds of R$2.16 billion, or approximately $432 million based on current exchange rates, comprised of a cash payment of approximately $325 million including $12 million in working capital adjustments, and an additional $107 million in net debt assumed by ICL.
Compass is also eligible for an additional payment of up to approximately R$88 million in 2022, assuming the maximum amount of earn-out consideration. As previously announced, the company intends to use proceeds from the sale primarily to pay down debt.
The company’s South American chemicals business was not included in this completed transaction, and that prior-announced sale process is ongoing.