Golden Gate Capital has announced that it has completed the acquisition of ArrMaz Custom Chemicals, a leading provider of process chemicals and functional additives for the fertilizer, industrial minerals and asphalt industries. ArrMaz will remain headquartered in Mulberry, Fla., led by the current management team, who will remain significant investors in the company. Terms of the transaction were not disclosed.

“We were attracted to ArrMaz as an investment due to its unique market leadership position, significant competitive advantages and long term growth potential,” said Rajeev Amara, a managing director of Golden Gate Capital. “We are committed to further investing in the Company to expand its global footprint and potentially leverage its highly specialized knowledge of surfactants into other end markets.”

“We are excited to work with Golden Gate Capital to accelerate our growth,” said Hank Waters, CEO of ArrMaz. “Golden Gate Capital’s investment validates the strength of ArrMaz’s value proposition, which is built on world-class products and exceptional customer service delivered by our talented employees. Golden Gate Capital’s substantial financial resources and long term outlook will enable ArrMaz to capitalize on an array of opportunities across the globe both organically and through acquisitions.”

GE Capital and Ares Capital provided financing to support the transaction. Lazard Middle Market advised ArrMaz. The Valence Group and Kirkland & Ellis advised Golden Gate Capital.

Founded in 1967, ArrMaz is a producer of a wide variety of process chemicals, which are generally custom formulated to meet customer specifications. ArrMaz is the leading producer of functional additives and process aids to the fertilizer and asphalt industries and is a significant provider of chemical products to related minerals mining industries. ArrMaz distributes its products in over 70 countries, with production facilities in key locations worldwide. For more information, visit www.am-cc.com.

Golden Gate Capital is a San Francisco-based private equity investment firm with approximately $12 billion of capital under management. The firm targets investments where there is a demonstrable opportunity to significantly enhance a company’s value. Other notable industrial investments sponsored by Golden Gate Capital include US Silica, EP Minerals and Atrium Windows.

The Mosaic Co. reported that operating earnings during the second quarter ending Nov. 30, 2012, were $560 million, down from the year-ago $797 million. Mosaic said the decline was primarily driven by lower phosphate volumes and margins. Mosaic’s net sales in the second quarter were $2.5 billion, down from $3.0 billion last year, driven by lower phosphate and potash volumes and lower phosphate prices.

Second quarter net income was actually up at $629 million ($1.47 per diluted share) versus the year-ago $624 million ($1.40 per share). The current year quarter included a $179 million, or $0.42 per share, benefit from a decrease in the amount of unrecognized tax benefits reported on the balance sheet.

Canpotex has agreed to supply China’s Sinofert with 1 million mt of potash during the first half of 2013 at $400/mt CFR. The price is down $70/mt from the previous deal. While the price was down more than some had expected, observers were optimistic as to the large tonnage. Share prices of the three Canpotex participants, PotashCorp, The Mosaic Co. and Agrium Inc. went up after the news came out at the end of 2012.

Koch FPF Holdings LLC, a subsidiary of Koch Fertilizer LLC has acquired Farmers Plant Food Inc., a leading privately-held fertilizer manufacturer and distributor of value-added fertilizer products and services. The company is based in Garretson, S.D., with production and distribution facilities in Garretson, Wolsey and Corson, S.D. and Verdi, Minn. Kevin Baum, president of Farmers Plant Food, will remain with the business on a consulting basis to assist in the transition. Terms of the transaction were not disclosed.

“With the addition of new products and growth of our storage and distribution networks, this move supports our overall expansion efforts while providing value for our customers and suppliers,” said Steve Packebush, Koch Fertilizer president. “In today’s evolving fertilizer marketplace, customers are demanding greater performance and higher overall service responsiveness. This move will help us better meet both of those objectives.”

Farmers Plant Food was founded in 1980 by Baum in Garretson as a regional fertilizer distributor of UAN and manufacturer of ammonium polyphosphate (APP). The business has expanded into other value-added liquid fertilizer products in recent years and has approximately 90,000 st of liquid storage capacity serviceable by both rail and truck. In addition to its liquid fertilizer business, Farmers Plant Food also markets dry fertilizer in the Upper Midwest.

“Farmers Plant Food’s liquid phosphorus and specialty plant food products are an excellent fit for Koch Fertilizer’s portfolio,” said Scott McGinn, Koch Nitrogen’s North America senior vice president. “The addition of these top-quality products, established customer base and solid distribution network should significantly enhance our presence in this growing market.”

Late Christmas Eve, the U.S. Army Corps of Engineers advised industry of the most current 28-day weather and water forecast for the Mississippi River area near Thebes, Ill., south of St. Louis, where rock pinnacle removal work is taking place. The forecast suggests that commerce on the Mississippi River could come to an effective halt earlier than expected in the New Year, around Jan. 3 or 4. Earlier forecasts had suggested that the congressionally authorized nine-foot navigation channel could remain in operation until perhaps the middle of January.

The latest forecast calls for the Mississippi River gauge at Thebes to be at 3 feet and falling on or around Jan. 3-4, with vessel drafts limited to 8 feet. The forecast for the river gauge to reach to 2 feet and falling will be on or around Jan. 12-13, allowing only a 7-foot maximum vessel draft. It is estimated that the river will reach a reading of 1 foot and falling on or around Jan.19, which equates to 6 feet of navigable depth. The majority of towboats require a 9-foot draft to operate and only a very small number of towing vessels can operate at 8- or 7-foot drafts.

Stakeholders continue to urge the Administration to release a minimal amount of water from the Missouri River reservoirs (4,000 cfs or 1 percent of current storage in the reservoir system) to avert this effective shutdown of the Mississippi River to barge transportation. While the Corps and the Coast Guard have said that they have no plans to close the river, this latest forecast and falling water levels will preclude navigation because towboats will be unable to transit the “bottleneck reach” between St. Louis and Cairo, Ill., according to The Waterways Council Inc. and the American Waterways Operators.