it has signed a binding agreement to acquire a Brazilian company for the production of fertilizers and food supplements for plants called Agro Fertilaqua Byticipações for $ 120 million. The acquisition is expected to materialize during the first quarter of 2021, subject to Brazilian regulatory institutions' approval of the transaction.
ICL notes that Agro Fertilaqua serves about 500 customers throughout Brazil, employs about 350 people, and operates two manufacturing sites alongside two research and development centers. The company's main sales are food supplements for soybeans, corn, and sugar cane crops, which are the main crops in Brazil, and market estimates are that its annual revenues range from $ 40-30 million. ICL has recently been examining the expansion of its activity in the Brazilian agricultural market, growing at a yearly rate of 5% -7%, compared to the growing US and European agricultural markets.
ICL, whose primary sales in Brazil are due to potash, became interested in Agro Fertilaqua about two years ago when it began to be exposed to its latest products. Fertiláqua provides ICL with a significant foothold in a large market, where the growth in demand for specialty fertilizer products is accelerating. Besides, it immediately creates synergies with our distribution capabilities in Brazil.