The Business

The Mosaic Company (www.mosaicco.com – NYSE: MOS) is a $5.3 billion annual revenue business that was formed in 2004 via the combination of two respected and successful industry leaders, IMC Global and Cargill Crop Nutrition. The Company’s world-class mining and processing operations produce the highest quality fertilizer and animal feed ingredients. Mosaic offers all three crop nutrients (phosphate, potash and nitrogen), customized services that increase both crop and economic yields, plus a rich legacy of experience and innovation. The Company moves these products down the value chain to wholesalers and retail dealers through its global distribution system which serves customers in 33 countries.

 

Mosaic’s European Operations consisted of a French operation, Mosaic Russia and Mosaic Ukraine. The French business participates as a reseller of fertilizer products in the mature French fertilizer market. Mosaic Ukraine blends fertilizer products purchased from European producers and distributes them to independent dealers in the rapidly growing Ukrainian market. Mosaic Russia is an early stage venture that provides numerous agronomy support services and distributes fertilizer into the vast Russian crop nutrients market.

The Industry

Long term nutrient demand is very strong. As urbanization and desertification reduce the availability of arable land as well as the rural workforce, agriculture will need to adopt new forms of mechanization and shift to land use intensification to feed the world’s growing population. These trends point to an increase in use efficiencies of all natural resources, particularly water, and to the need for greater use of mineral fertilizer.

The Process

Prestwick Partners advised Mosaic on the divestiture of its French, Russian and Ukrainian operations. Prestwick Partners valued each of the three businesses, prepared a Confidential Offering Memorandum describing the European Operations and consulted with senior management on a strategy to divest Mosaic’s European Operations to enable the Company to better focus on its core North American fertilizer production facilities.