Second Acquisition in Recent Months in Rapidly-Growing Specialty Fertilizers Sector. Revenues from Specialty Fertilizers Market to Reach $650M.
ICL announced that it has acquired Grupo Empresarial Agromediterraneo, S.L., the holding company of Antonio Fuentes Mendez S.A., (“Fuentes”), Spain’s largest producer of specialty fertilizers, for an undisclosed sum. The purchase includes Fuentes’ line of proprietary liquid and soluble fertilizers and bulk blends, its production facilities located in Totana and Cartagena, Spain, as well as warehouses, port facilities and logistics centers located throughout southern and eastern Spain. Fuentes’s 2010 revenues were approximately EU 109 million. Following the acquisition, Fuentes and its wholly-owned operating subsidiaries have become a part of ICL Specialty Fertilizers, a business unit of ICL Fertilizers. ICL financed the acquisition from its own resources.
The acquisition of Fuentes establishes ICL as the leading supplier of specialty fertilizers in the rapidly-growing Spanish market. Fuentes markets a broad line of branded high-quality liquid and water soluble fertilizers (WSF), as well as bulk blends. It sells its products primarily in southern and eastern Spain, which accounts for 75% of the Spanish market for specialty fertilizers. In these regions, sales of WSF fertilizers are growing by 8% to 12% per annum, while sales growth for traditional fertilizers is relatively flat. Fuentes also possesses strong R&D capabilities for liquid and soluble fertilizers.
This acquisition represents a further step forward in line with ICL’s strategy to broaden its activities in the specialty fertilizers sector, a market which it has identified as possessing strong growth potential. It follows ICL’s recent $270 million purchase of the Global Professional business of The Scotts Miracle-Gro Company (“Global Pro”). These acquisitions establish ICL Specialty Fertilizers as a global $650 million specialty fertilizers company with a broad, recognized product portfolio of soluble, liquid, slow-release and control release fertilizers, strong global sales and marketing capabilities, production facilities in the US, EU and Israel, and a strong presence in Spain, the EU’s largest market for specialty fertilizers.
The acquisition positions ICL Specialty Fertilizers as the leading provider of downstream fertilizer products in Spain, and also provides it with a strong platform for expansion throughout Spain, the EU and North Africa. The acquisition diversifies ICL Specialty Fertilizers’s product offerings, enhances its production and R&D capabilities and improves its geographic marketing reach. ICL intends to realize operating synergies from the acquisition, especially in the areas of marketing in the Spanish market, raw materials, R&D and logistics.
“Our acquisition of Fuentes’ specialty fertilizers business, following our recent purchase of Scotts’ Global Pro business, further demonstrates our intention to become a leading player in downstream, high-growth fertilizer markets,” commented Mr. Yossi Shahar, ICL’s Executive VP, Corporate Development. “It gives us clear leadership of the Spanish specialty fertilizers market while enhancing our product portfolio, R&D capabilities, production, logistical and marketing capabilities.”
Mr. Yossi Zidon, Senior VP, ICL Specialty Fertilizers, added, “We are very excited to move forward so rapidly with our plan to build ICL into a major Special Fertilizers player. The acquisition of Fuentes builds our presence in Spain, an important end-market as well as a strategic gateway to Northern Africa and the EU, while building out our brands, sales, logistics and manufacturing capabilities. We welcome the entire Fuentes team into the ICL family and look forward to working together to accelerate the growth and profitability of ICL Specialty Fertilizers.”