OVERLAND PARK, Kan.--(BUSINESS WIRE)--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. For more information, please see the company’s presentation at www.CompassMinerals.com/presentation.
About Compass Minerals
Based in the Kansas City metropolitan area, Compass Minerals is a leading producer of minerals, including salt, sulfate of potash specialty fertilizer and magnesium chloride. The company provides highway deicing salt to customers in North America and the United Kingdom and specialty fertilizer to growers worldwide. Compass Minerals also produces consumer deicing and water conditioning products, ingredients used in consumer and commercial foods, and other mineral-based products for consumer, agricultural and industrial applications. Compass Minerals also provides records management services to businesses throughout the U.K.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's current expectations and involve risks and uncertainties that could cause the Company's actual results to differ materially. The differences could be caused by a number of factors including those factors identified in the “Risk Factors” sections of our Annual and Quarterly Reports on Forms 10-K and 10-Q. The Company undertakes no obligation to update any forward-looking statements made in this press release to reflect future events or developments.