Canada: Compass acquires Big Quill SOP maker

Sulphate of potash producer Compass Minerals International, Inc. has announced that it had completed an all cash purchase of Canadian leading SOP producer Big Quill Resources for US$56.3 million. Big Quill makes “high-purity” SOP for nutrients used by crop and turf growers, as well as for non-agricultural specialty applications. The Company’s Wynyard site, in Saskatchewan, which can process up to 40,000 short tons per year, produces much of its SOP by extracting naturally-occurring sulphate from the brine of Big Quill Lake and combining it with potassium chloride. Big Quill sources its potassium chloride through a “very long-term, advantaged supply agreement. Compass expects the acquisition to be “immediately accretive”. In addition, they plan to expand Big Quill’s production and sales of high-value specialty products over time. The Kansas City based Compass is already a producer of “organic-approved” SOP, which it markets to crop, fruit, vegetable and tree nut growers in the Americas and Pacific Rim. According to Compass, Big Quill’s 2010 revenues are expected to be about $23 million with EBITDA of some $7 million; last year they sold some 35,000 short tonnes.

Advertisements
%d bloggers like this: