ICL, a global manufacturer of products based on specialty minerals that fulfill essential needs of the world's growing population in the agriculture, processed food and engineered materials markets, announced the completion of its previously announced acquisition of Vale Fertilizante's ("Vale") equity holding in Fosbrasil S.A., a Brazilian-based producer of downstream phosphate-based products including purified phosphoric acid for the food market and phosphate-based fertilizers ("Fosbrasil"). ICL and Vale were former joint venture partners in Fosbrasil. With ICL's acquisition of Prayon S.A's minority position in Fosbrasil, ICL now owns 100% of Fosbrasil.
ICL entered into a definitive agreement to acquire Vale's share of Fosbrasil in December 2013 pending regulatory approval which was recently received.
ICL is a global roducer and marketer of phosphoric acids and phosphates with production facilities in Brazil, the US, Mexico, Germany, Israel and China. The acquisition of all of Fosbrasil represents an additional step in ICL's implementation of its "Next Step Forward" strategy to strengthen ICL's core business activities in the food, agriculture and engineered materials markets, and to increase its activities in emerging markets, including Brazil, China, India and Africa, which are the primary focus for achieving the Company's strategic goals.
Consolidating Fosbrasil into ICL's existing end-to-end phosphate value chain will strengthen ICL's overall position in the market through synergies utilization and improved competitiveness.
The consolidation of ICL's ownership in Fosbrasil will benefit ICL's customers by providing them with a dependable, broad line of phosphoric acids and phosphates, as well as with increased production and customer support.
"We are gratified to complete our acquisition of 100% of the equity of Fosbrasil whose product line will enhance our position as a leading company in the production and marketing of phosphate-based, downstream products for the engineered materials and food additives global markets", commented Mr. Mark Volmer, President and CEO of ICL Performance Products. "It is part of ICL Performance Products' global expansion strategy to enable us to achieve greater competitiveness through increased control over our production and marketing activities, as well as by taking advantage of the global synergies and supporting activities offered by ICL which is active throughout the phosphates value chain, from mining phosphates to the production and marketing of downstream products worldwide. Our full ownership of Fosbrasil will also allow us to broaden our product portfolio while optimizing our operations. We welcome the Fosbrasil team to the ICL Performance Products family."