Compass Minerals has signed a definitive agreement to acquire Wolf Trax, Inc., an innovative micronutrient company, in an all-cash transaction valued at $85 million, subject to customary post-closing adjustments.
“Wolf Trax brand products are well recognized by fertilizer customers for the differentiated technology they bring to the application of micronutrients. 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,” said Fran Malecha, Compass Minerals president and CEO. “Both Wolf Trax products and Compass Minerals’ sulfate of potash products offer customers a compelling value proposition. With Wolf Trax’s strong product development and value-added sales capabilities, we will become the go-to source for premium plant nutrition products.”
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 important nutrients, such as boron, zinc, copper and manganese, directly to the plant.
With headquarters in Winnipeg, Manitoba, Wolf Trax generated sales of approximately CA$20 million in 2013. Compass Minerals will fund the purchase with cash on hand.
For more information about Compass Minerals’ plans to acquire Wolf Trax, see the company’s presentation at http://phx.corporate-ir.net/phoenix.zhtml?c=148615&p=irol-presentations.