POTASH CORPORATION OF SASKATCHEWAN INC. ENTERS AGREEMENT WITH FLORIDA FAVORITE FERTILIZER INC.
POTASH CORPORATION OF SASKATCHEWAN INC. ENTERS AGREEMENT WITH FLORIDA FAVORITE FERTILIZER INC. SASKATOON, Saskatchewan, Jan. 15 /PRNewswire -- Potash Corporation of Saskatchewan Inc. (NYSE, Toronto, Montreal: POT) (PCS) today announced the entering into of a definitive and binding agreement between a wholly owned subsidiary of Potash Corporation of Saskatchewan Sales Ltd. (itself a wholly owned subsidiary of PCS) and Florida Favorite Fertilizer Inc. The agreement, which is effective immediately provides for the establishment of a limited partnership composed of the PCS Sales subsidiary as general partner and Florida Favorite Fertilizer Inc. and certain corporations associated and affiliated with it, as limited partners. Under the terms of the agreement the limited partners will contribute to the partnership all of their assets, the general partner will contribute approximately $2.9 million (U.S.) and the partnership will assume substantially all of the liabilities of the limited partners. The partnership, which will continue doing business under the Florida Favorite Fertilizer name, will be under the exclusive management and control of the general partner. There will be an immediate cash distribution to the limited partners. Following such distribution, the general partner will be entitled to a continuing preferred return on its contribution and also a continuing preferred return of the amount of its contribution. The limited partners will have a secondary return on their contribution. The agreement also grants to the limited partner an option, exercisable to July 1, 1998, to purchase all the assets of the partnership. In the event the option is not exercised the general partner will at that date purchase, from the limited partners and for a nominal sum, their entire interest in the partnership. Florida Favorite Fertilizer is a manufacturer, processor and distributor of fertilizer and other agricultural supplies from plants located in Florida, Alabama and Georgia. It also operates a 1,900-acre sod farm near Lake Okeechobee, Fla., under a long-term lease. The company presently employs over 200 people and in fiscal year 1990/91 had sales of $58.8 million (U.S.). C.E. Childers, chairman, president and chief executive officer of Potash Corporation of Saskatchewan Inc., announced that Carlos W. Smith, former director of U.S. sales, would be president of the Florida operation. "We believe that the breadth of Mr. Smith's experience in the fertilizer industry will serve us well in making this venture a success," he said. Potash Corporation of Saskatchewan Inc. is a leading publicly owned Canadian company engaged in the mining, production and sale of potash to agricultural and industrial markets in North America and around the world. -0- 1/15/92 /CONTACT: Betty-Ann Heggie, VP corporation relations of Potash Corporation of Saskatchewan, 306-933-8521/ (POT) CO: Potash Corporation of Saskatchewan ST: Alberta IN: MNG SU: JVN
EH -- LA020 -- 0134 01/15/92 15:50 EST
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|Date:||Jan 15, 1992|
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