Jan 11 2011
Compass Minerals (NYSE: CMP) has acquired Big Quill Resources Inc., Canada’s leading producer of sulfate of potash, in an all-cash transaction valued at 56 million Canadian dollars (US$56.3 million), subject to customary post-closing adjustments.
Located on Big Quill Lake near Wynyard, Saskatchewan, Big Quill Resources produces high-purity sulfate of potash (SOP) for non-agricultural specialty applications as well as for nutrients used by growers of high-value crops and turf.
“Big Quill is an innovative, entrepreneurial business with unique production capabilities, technical expertise and non-seasonal applications that will both broaden and strengthen Compass Minerals’ specialty fertilizer segment,” said Angelo Brisimitzakis, Compass Minerals president and CEO. “We expect this acquisition to be immediately accretive. In addition, we plan to expand Big Quill’s production and sales of high-value, specialty products over time.”
The Wynyard site, with an annual capacity of approximately 40,000 short tons, produces much of its SOP by extracting naturally occurring sulfate from the brine of Big Quill Lake and combining it with potassium chloride purchased through a very long-term, advantaged supply agreement. Big Quill’s 2010 revenues are expected to be approximately CA$23 million with EBITDA of approximately CA$7 million. Compass Minerals funded the purchase with cash on hand.
Source: http://www.compassminerals.com/