March 18, 2014


Mosaic completes acquisition of CF Industries' phosphate business



The Mosaic Company has completed its acquisition of CF Industries, Inc.'s phosphate business for US$1.2 billion in cash, plus US$200 million to fund CF's asset retirement obligation escrow.


Mosaic has acquired a 25,000-acre phosphate mine and beneficiation plant, a phosphate manufacturing facility, an ammonia terminal and finished product warehouse facilities in the Tampa area. The facilities currently produce approximately 1.8 million tonnes of phosphate fertiliser per year, which will bring Mosaic's annual phosphates capacity to over 11 million tonnes.


The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients.


Mosaic funded the acquisition with cash, a portion of which Mosaic plans to replace with pre-payable intermediate term debt financing. The company intends to repay this debt financing as it generates excess free cash flows.


"This acquisition provides opportunities for enhanced operating efficiencies, lower production costs and reduced capital investment - creating value for our shareholders, customers and employees," said Mosaic president and chief executive officer James T. Prokopanko. "The addition of these new phosphate assets further solidifies Mosaic's position among the largest, most efficient and lowest cost phosphate producers in the world," Prokopanko added.


The acquisition is additive to Mosaic's existing Florida operations, and complements the company's plans to mine phosphate rock reserves in Hardee and Desoto counties and extensions of the existing Wingate mine. The former CF mine's proximity to Mosaic's planned Ona mine creates substantial opportunities for operational synergies.


"We are thrilled to welcome CF's Florida phosphate employees to Mosaic," said Gary N. "Bo" Davis, Mosaic senior vice president - phosphate operations. "This addition will strengthen our operations and our deep commitments to the Central Florida communities where our employees live and work," said Davis.

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