Mosaic Co. Moving HQ to Florida
Minnesota is losing another Fortune 500 company headquarters. Plymouth-based fertilizer giant The Mosaic Company announced plans to relocate its corporate office to Hillsborough County in central Florida. Mosaic posted revenue of $7.4 billion for 2017, ranking it as one of the largest companies in the state of Minnesota.
Specifics about the move aren’t yet clear. The company’s statement indicated: “Details of the move, including timing, the exact location of the corporate office and the number of employees to be relocated, remain under consideration.”
The move comes on the heels of Mosaic’s acquisition of Brazil-based Vale Fertilizantes. Mosaic closed on the $1.08 billion acquisition in January. The deal made Mosaic the largest fertilizer production and distribution company in Brazil.
At the end of 2017, Mosaic had about 8,500 employees across the globe. The Vale Fertilizantes acquisition adds another 7,300 employees bringing its worldwide total to about 15,800 employees.
Mosaic’s announcement notes that the move will give the company “closer proximity and better access to Mosaic Fertilizantes.” Brazil is now the company’s largest market. The company’s first quarter 2018 results show that its $688.6 million of sales in Brazil accounted for 36 percent of its quarterly revenue.
According to the company’s most recent annual filing, it owns more than 290,000 acres of property in central Florida.
“Certainly, we don’t like losing any of our business or corporate partners here in the state, but I would say this is yet another wake-up call about the state’s competitiveness,” said Doug Loon, president of the Minnesota Chamber of Commerce. “We need to make sure that Minnesota has a long-term approach to making sure that we are competitive, not just nationally but globally.”
But Loon noted that the Brazil acquisition signaled a significant shift for Mosaic’s business.
“They are increasingly a global company,” said Loon. “Their employment base is largely somewhere else.”
In a statement provided to Twin Cites Business, Minnesota Department of Employment and Economic Development Commissioner Shawntera Hardy said: “Mosaic is a valuable Minnesota company and contributor to our state’s overall economy. I am encouraged that the company will still maintain a presence here in Minnesota. Mosaic has not yet indicated how many employees will be affected by this move or when it will happen. DEED stands ready and willing to assist Mosaic and its impacted employees once those details are finalized.”
Mosaic ranked at number 377 on the 2017 Fortune 500 list, one of 18 Minnesota companies listed there. But St. Jude Medical Inc. which ranked in the 434th spot will be dropped after it was acquired in January 2017 by Illinois-based health care giant Abbott. (The Fortune 500 list, which ranks America’s largest public companies, is based on financial results from the previous year.)
Mosaic will be listed on the 2018 list, which is due out next week. Minnesota’s lineup of Fortune 500s will drop to 16 unless another company is added to the list. Last year, St. Paul-based Securian Financial Group ranked 532nd on the list.
In 2010, Minnesota had 21 companies on the Fortune 500. Last year, Twin Cities Businesses took an in-depth look at the decline of Fortune 500 headquarters in Minnesota.
Last week, Mosaic named Clint Freeland as its new senior vice president and chief financial officer. Freeland joins the company from Texas-based energy company Dynegy Inc., where he served as CFO. Dynegy was just sold to another company. Freeland steps into the new role on June 4.