Compass Minerals to Complete the Acquisition of the Remainder of Produquímica

Compass Minerals announced the purchase all outstanding interest in Produquímica

United States: Compass Minerals, a US based company involved in the manufacturing of plant nutrients, announced that it has signed an agreement to buy all outstanding interest in Produquímica Indústria e Comércio S.A., a Brazil based company engaged in the manufacturing and distribution of specialty plant nutrients. Compass Minerals acquired 35% stake, worth USD120.7 million in Produquimica in 2015. The transaction of the remaining 65% of equity is expected to be worth USD310–330 million, depending upon Produquímica's performance in 2016.

TechSci Research depicts that the complete acquisition of the remaining stake in Produquímica would aid Compass Minerals to enter higher growth markets and geographically diversify its earnings. Moreover, the agricultural productivity division of Produquímica would aid the expansion of Compass Minerals’ product portfolio by adding micronutrients, controlled release fertilizers, and other specialty supplements used in direct soil and foliar applications.

According to the recently published report by TechSci Research, “Global Water Soluble Fertilizers Market By Type, By Composition (Straight and Complex), By Grade (NPK, NP, PK and Others), By Structure, By Application, By Crop, By Region, By Sales Channel, Competition Forecast and Opportunities, 2011-2021”, the global market for water soluble fertilizers is projected to grow at a CAGR of more than 5% over the next five years, on account of growing demand for food grains, depleting water levels, shrinking availability of arable land, coupled with high efficiency and ease of usage of water soluble fertilizers as compared to conventional chemical fertilizers.