Mosaic To Acquire Vale Fertilizantes Business - Quick Facts

(RTTNews) - The Mosaic Company (MOS) announced it has agreed to acquire from Vale S.A. its Vale Fertilizantes business for an aggregate purchase price of $2.5 billion. Mosaic intends to fund the acquisition with $1.25 billion in cash, which the company plans to raise through the issuance of debt, and approximately 42.3 million shares of its common stock. The shares of Mosaic common stock to be issued to Vale at closing are expected to represent approximately 11 percent of Mosaic's outstanding shares. Vale will have the potential to earn an additional amount of up to $260 million to be paid in cash over the two-year period following closing if certain financial metrics are achieved.

Mosaic said the business to be acquired currently has capacity to produce 4.8 million tonnes of finished phosphate crop nutrients and 500,000 tonnes of potash. It includes five Brazilian phosphate rock mines and four chemical and fertilizer production facilities, as well as one potash facility in Brazil.

Mosaic expects the acquisition to be accretive to its earnings per share in 2018, generate over $80 million of after-tax synergies and provide substantial leverage to improvements in the crop nutrient business cycle. Mosaic's combined fertilizer business in Brazil will be led by Rick McLellan, currently the company's Senior Vice President, Commercial. The acquisition will add approximately 8,000 employees, bringing Mosaic's global headcount to approximately 17,000.