Israel Chemicals has signed a letter of offer to buy Scotts Global Professional, a specialized fertilizers and chemicals subsidiary of Ohio-based Scotts Miracle-Gro Company, for $270 million, Israel Chemicals said Tuesday. Scotts Global Professional reported revenues of $242 million and net profits of $31.4 million for the financial year ending September 2010.
The agreement includes the purchase of production facilities in the Netherlands, the UK and the US, as well as peat mines.
The proposed transaction includes the brands, products, employees, R&D resources associated with the Scotts Global Professional business.
Israel Chemicals intends to finance the purchase from its own resources and plans to integrate the activities into its ICL Fertilizers division, which accounts for more than half of its revenues.
"ICL's interest in Scotts Global Professional business, a well known brand in specialty fertilizers, derives from our intention to increase our focus on environmentally-important fields whose growth is being accelerated by global trends," said Yossi Shahar, ICL's executive vice president of corporate development.
He added that "this acquisition will establish ICL as the leading player in certain specialty fertilizers and specialty inputs markets in which we have been active for many years and will complement our existing fertilizer capabilities."
Last month Israel Chemicals reported third-quarter revenues of $1.394 billion and net profits of $243 million. In the first nine months of 2010 the company reported a 28% increase in revenues to $4.271 billion compared to $3.328 billion in the same period of 2009.
Net profits rose in the first three quarters of this year by 37% to $779 million compared to $568 million in the same period in 2009.
Israel Chemicals is a leading producer of potash, phosphates, fertilizers, bromine and bromine compounds.
The agreement includes the purchase of production facilities in the Netherlands, the UK and the US, as well as peat mines.
The proposed transaction includes the brands, products, employees, R&D resources associated with the Scotts Global Professional business.
Israel Chemicals intends to finance the purchase from its own resources and plans to integrate the activities into its ICL Fertilizers division, which accounts for more than half of its revenues.
"ICL's interest in Scotts Global Professional business, a well known brand in specialty fertilizers, derives from our intention to increase our focus on environmentally-important fields whose growth is being accelerated by global trends," said Yossi Shahar, ICL's executive vice president of corporate development.
He added that "this acquisition will establish ICL as the leading player in certain specialty fertilizers and specialty inputs markets in which we have been active for many years and will complement our existing fertilizer capabilities."
Last month Israel Chemicals reported third-quarter revenues of $1.394 billion and net profits of $243 million. In the first nine months of 2010 the company reported a 28% increase in revenues to $4.271 billion compared to $3.328 billion in the same period of 2009.
Net profits rose in the first three quarters of this year by 37% to $779 million compared to $568 million in the same period in 2009.
Israel Chemicals is a leading producer of potash, phosphates, fertilizers, bromine and bromine compounds.
