ICL Makes A Step Change In Its Global Phosphate Business By Forming A Strategic Alliance With China's Yunnan Yuntianhua

-- ICL to invest up to $500 million for 50% ownership of a joint venture that will operate a fully integrated, world-scale phosphate business in China and a 15% strategic holding in Yunnan Yuntianhua, Asia's leading producer of phosphate rock. The transaction will be cash EPS accretive for ICL from the first year, with an EV/EBITDA ratio of 7.4 based on second year projections ---- The joint venture will include a mine that produces ~2.5 million tonnes of phosphate rock annually for the next 30 years, a world scale downstream phosphate operation and a marketing and sales organization that primarily serves the Chinese and the Asian markets ---- The strategic alliance will leverage ICL's and Yunnan Yuntianhua's technical, marketing and production expertise and will include a joint phosphate R&D platform in the Yunnan province to develop process improvement and new products for both partners ---- ICL has identified significant expansion and synergy potential: the major thrust of the JV's strategy will be the transformation from a commodity fertilizer company to a specialty player in Agriculture, Food Ingredients and Engineered Materials ---- With this transaction, ICL continues to implement its "Next Step Forward" strategy: diversifying and upgrading its sources of raw materials in line with global end markets, especially in emerging markets (China, Brazil, India and Africa); expanding its end market reach to fulfill essential needs in agriculture, food and engineered materials; and improving company-wide efficiency and cost positions. ICL intends to continue exploring further opportunities in these directions --