Compass Minerals Acquires Canadian Sulfate of Potash Producer, Big Quill Resources Inc.

Compass Minerals (NYSE: CMP) has acquired the leading producer of sulfate of potash in Canada,Big Quill Resources Inc. It was an all-cash transaction, no shares, valued at 56 million Canadian dollars, subject to to the usual adjustments post-closing.

Big Quill Resources produces high-purity sulfate of potash, to be used in non-agricultural specialty applications as well as agricultural nutrients for high-value crops and turf.

Big Quill Resources is located at Big Quill Lake near Wynyard, Saskatchewan, Canada.

We expect this acquisition to be immediately accretive.

Big Quill was an attractive acquisition for compass and minerals because of its unique production capability, it’s in-house technical expertise, and the innovative, entrepreneurial way it approaches business. Compass minerals expects the acquisition to immediately broaden and strengthen it’s own business in the specialty fertilizer market.

Angelo Brisimitzakis, Compass Minerals president and CEO, said “We expect this acquisition to be immediately accretive. In addition, we plan to expand Big Quills production and sales of high-value, specialty products over time.”

Big Quill’s Wynyard site, comes with an annual production capacity of around 40,000 short tons of sulfate of potash. Most of the?sulfate of potash is extracted from naturally occurring sulfate in the brine at Big Quill Lake. It is then combined with potassium chloride purchased through a very long-term, advantaged supply agreement. In 2010, Big Quill revenue is expected to be almost CA$23 million. EBITDA is estimated at close to CA$7 million.

We plan to expand Big Quill’s production and sales of high-value, specialty products over time.

Brisimitzakis says Compass Minerals funded the purchase with current cash on hand.

Compass Minerals is based in Kansas City producing minerals, including salt, sulfate of potash specialty fertilizer and magnesium chloride. The company provides highway de-icing salt to customers in North America and the United Kingdom and specialty fertilizer to growers around the world. The company also has consumer deicing and water conditioning products, ingredients used in consumer and commercial foods, and other mineral-based products for consumer, agricultural and industrial applications.

Surprisingly, Compass Minerals also provides records management services to businesses throughout the U.K.

Compass Minerals’ Chief Financial Officer is Rodney L. Underdown.

Alan Gray is the Publisher and Editor-in-Chief of NewsBlaze Daily News and other online newspapers. He prefers to edit, rather than write, but sometimes an issue rears it’s head and makes him start hammering away on the keyboard.

Content Expertise

Alan has been on the internet since it first started. He loves to use his expertise in content and digital marketing to help businesses grow, through managed content services. After living in the United States for 15 years, he is now in South Australia. To learn more about how Alan can help you with content marketing and managed content services, contact him by email.

Technical Expertise

Alan is also a techie. His father was a British soldier in the 4th Indian Division in WWII, with Sikhs and Gurkhas. He was a sergeant in signals and after that, he was a printer who typeset magazines and books on his linotype machine. Those skills were passed on to Alan and his brothers, who all worked for Telecom Australia, on more advanced signals (communications). After studying electronics, communications, and computing at college, and building and repairing all kinds of electronics, Alan switched to programming and team building and management.

He has a fascination with shooting video footage and video editing, so watch out if he points his Canon 7d in your direction.