ICL to Sell its Pharma, Cosmetics and Gypsum Businesses to One Rock Capital Partners

Wednesday, May 27, 2015
Amiram Fleisher, Fleisher Communications


ICL (NYSE and TASE: ICL), a global manufacturer of products based on specialty minerals that fulfill essential needs of the world’s growing population in the agriculture, processed food and engineered materials markets, and One Rock Capital Partners (“One Rock”), a New York-based private equity company active in the chemicals industry, today announced that ICL’s Performance Products segment (“ICL PP”) has agreed to sell its Germany-based Pharma, Cosmetics and Gypsum (“PCG”) businesses to an affiliate of One Rock. The share and asset purchase transaction is expected to close in the near term, subject to the completion of certain customary conditions.

ICL’s PCG business units are engaged in the production of active ingredients for antacids and antiperspirants, as well as products for dental applications. The sale of the PCG business units is part of ICL’s ‘Next Step Forward’ strategy to divest its non-core businesses to focus on its core businesses in the agriculture, food and engineered materials markets and to optimize its positioning in those markets. One Rock’s purchase of the PCG businesses is in line with its investment strategy and will provide One Rock with an opportunity to expand its activities in the global chemicals industry. 

Commenting on the sale of the PCG business units, ICL PP’s President & CEO, Mark Volmer, stated, “ICL PP intends to use the proceeds from the sale of our PCG businesses to strengthen our core businesses in the food and engineered materials markets, and to expand our global presence, especially in emerging markets. We are certain that we have found an optimal owner for our PCG units that will develop their businesses and increase their activities globally. This transaction is opportune not only for ICL and One Rock, but also for PCG’s dedicated and talented team of employees.”

Tony Lee, Managing Partner of One Rock, commented, “We are excited about the acquisition of PCG given its excellent reputation worldwide. We plan to strengthen the business even further and will work in earnest to continue to provide PCG’s customers with the best products and services globally.”

About One Rock 

One Rock makes investments in companies with potential for growth and operational improvement using a rigorous approach that utilizes highly experienced Operating Partners to identify, acquire and enhance businesses in select industries. The involvement of these Operating Partners affords One Rock the ability to conduct due diligence and consummate acquisitions and investments in all types of situations, regardless of complexity. One Rock works collaboratively with company management and its Operating Partners to develop a comprehensive business plan focused on growing the enterprise and enhancing its profitability to enhance long-term value.

About ICL 

ICL is a global manufacturer of products based on specialty minerals that fulfill humanity’s essential needs primarily in three markets: agriculture, food and engineered materials. The agricultural products that ICL produces help to feed the world’s growing population. The potash and phosphates that it mines and manufactures are used as ingredients in fertilizers and serve as an essential component in the pharmaceutical and food additives industries. The food additives that ICL produces enable people to have greater access to more varied and higher quality food. ICL’s water treatment products supply clean water to millions of people, as well as to industry around the world. Other substances, based on bromine and phosphates help to create energy that is more efficient and environmentally friendly, prevent the spread of forest fires and allow the safe and widespread use of a variety of products and materials.

ICL benefits from a broad presence throughout the world and proximity to large markets, including in emerging regions. ICL operates within a strategic framework of sustainability that includes a commitment to the environment, support of communities in which ICL’s manufacturing operations are located and where its employees live, and a commitment to all its employees, customers, suppliers and other stakeholders. 

ICL is a public company whose shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs approximately 12,000 people worldwide, and its sales in 2013 totaled US$6.3 billion. For more information, visit the company’s website at www.icl-group.com.

About ICL Performance Products 

ICL Performance Products produces and markets food and pharma additives, specialty grades of phosphoric acid and phosphate salts, P2S5, fire-fighting chemicals, and other products and services. Its production facilities are located in Europe, North and South America, Israel, Australia and China. For more information, please visit www.iclpp.com.

Forward Looking Statement 

This press release contains forward-looking assessments and judgments regarding macro-economic conditions and the Group’s markets, and there is no certainty as to whether, when and/or at what rate these projections will materialize. Management’s projections are likely to change in light of market fluctuations, especially in ICL’s manufacturing locations and target markets. In addition, ICL is likely to be affected by changes in the demand and price environment for its products as well as the cost of shipping and energy, whether caused by actions of governments, manufacturers or consumers. ICL can also be affected by changes in the capital markets, including fluctuations in currency exchange rates, credit availability, interest rates, etc.

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