ICL announces the acquisition of Fertiláqua

ICL announces today that it has entered into a definitive agreement to acquire Fertiláqua, a leading Brazilian specialty plant nutrition company, for approximately US$120 million. The agreement also provides for a potential additional value, based on performance metrics, of 10% (the "Acquisition"). The acquisition will expand ICL's portfolio of specialty plant nutrition products and significantly increase its customer base and local presence in the agricultural regions of Brazil, one of the fastest growing agribusiness markets in the world. Previously, Fertiláqua was controlled by Aqua Capital, a leading private equity fund in agribusiness and food.

With more than 100 different products, including those marketed under the leading brands Aminoagro, Dimicron and Maximus, Fertiláqua offers a complete portfolio of solutions for the plant life cycle in nutrition and plant stimulation, soil revitalization, seed treatment and plant health in all major Brazilian crops, including soybeans, corn, sugar cane, cotton, coffee, fruits and vegetables. Fertiláqua is present in 24 Brazilian states and serves more than 500 customers, including agricultural input retailers, cooperatives and large producers. Fertiláqua has more than 350 employees, two production units and two Research and Development Centers. Since its founding, Fertiláqua has demonstrated strong growth, exceeding 15% per year.

Raviv Zoller, President and CEO of ICL, stated: "The acquisition of Fertiláqua is an important part of the growth strategy for our crop nutrition business. As we stated during our recent Investor Day, the expected growth of our crop nutrition business, both organically and through M&A will be supported, in part, by increased demand for high-quality specialty fertilizers and our focus on growth markets. Fertiláqua gives ICL a significant position in a growing market where demand for specialty plant nutrition products is rapidly increasing. Additionally, the acquisition brings immediate synergies for distribution in Brazil and further expands ICL's product portfolio with higher growth, higher margin products as well how it reduces seasonality in our specialty fertilizer sales between the Northern and Southern Hemispheres."

Sebastián Popik, Founder and Managing Partner of Aqua Capital, stated: "We are proud of Fertiláqua's trajectory. Since we acquired the company in 2013, we have built one of the main players in the sector in Brazil. The sale to ICL confirms the development and implementation , by Aqua, of Fertiláqua's technological advantage, with a best-in-class product portfolio, R&D capabilities and strong market presence. Furthermore, we are proud to have successfully closed this transaction with ICL during these challenging times, having worked creatively and constructively to make this happen."

After the closing of the Acquisition, expected to occur in early 2021, and which is subject to compliance with the usual conditions for closing transactions such as this, such as Cade's approval in Brazil, ICL expects to leverage Fertiláqua's strong market presence and its distribution capacity to increase sales of its organic fertilizers, controlled-release fertilizers and other specialty plant nutrition products to the Brazilian market.