Mosaic CEO Prokopanko To Take Medical Leave; Stranghoener Named Interim CEO; Mack Named CFO Prokopanko expected to return from medical leave this summer
PLYMOUTH, Minn., May 29, 2014 /PRNewswire/ -- The Mosaic Company (NYSE: MOS) announced today that its President and Chief Executive Officer, James T. Prokopanko, is taking an anticipated medical leave of absence for surgery to treat his previously disclosed cancer. The Board of Directors has named Lawrence W. Stranghoener, 60, Interim CEO during Mr. Prokopanko's absence, effective June 1, 2014. Mr. Stranghoener has served as Mosaic's Executive Vice President and Chief Financial Officer since the company's formation in 2004.
"It is in Mosaic's best interest, and mine, that I focus on my health during the six- to eight-week period that my doctors tell me I should expect to be out of the office for surgery and recovery," Mr. Prokopanko said. "This surgery has been part of the original plan laid out by my medical team and I am eager to take this next important step in my treatment. Larry is an outstanding leader who enjoys the deep respect of our employees and other stakeholders. I will make myself available to him and the rest of our management team, as needed, during my leave. I am looking forward to actively re-engaging in the day-to-day activities of the business once I have recovered from surgery."
"The entire Board continues to wish Jim the very best and is grateful for his thoughtful and open approach," said Robert L. Lumpkins, Chairman of Mosaic's Board of Directors. "We have great confidence in Jim, Larry and the rest of the talented management team. We are looking forward to Jim's full-time return to Mosaic this summer."
Mosaic also announced today that Mr. Stranghoener intends to retire at the end of 2014 and that the Board has named Richard L. Mack, 46, Executive Vice President and Chief Financial Officer effective June 1, 2014. Upon Mr. Prokopanko's return, Mr. Stranghoener will serve as Executive Vice President – Strategy and Business Development until his retirement date and will focus on ensuring a smooth transition of his CFO duties to Mr. Mack and on advancing Mosaic's strategic objectives. After Mr. Stranghoener's retirement, his business development and strategy responsibilities will be assumed by Mr. Mack.
Mr. Mack, currently Executive Vice President, General Counsel and Corporate Secretary, has served as Mosaic's General Counsel since the company's launch in 2004 and has 20 years of experience in the crop nutrition industry. In the decade prior to Mosaic's formation, he served in various capacities at Cargill, Incorporated, where he played an instrumental role in the negotiations that created Mosaic and served as a founding executive of the company. In addition to his general counsel responsibilities, Mr. Mack provides oversight of the company's phosphate mine permitting and land activities, heads Mosaic's enterprise risk management initiatives, serves on the board of directors of Ma'aden Wa'ad Al Shamal Phosphate Company and envisioned and leads Streamsong Resort. He holds a bachelor's degree in accounting from Minnesota State University-Moorhead, a Juris Doctor from Hamline University School of Law and an MBA from the Kellogg School of Management at Northwestern University.
"I am very proud of the exceptional team and business we have built over the past decade at Mosaic and appreciate Jim's and the Board's confidence in me," Mr. Stranghoener said. "Rich will be an excellent CFO for this company. He is a gifted strategic thinker, has been an exceptional partner on virtually every important finance matter impacting Mosaic over the past 10 years and has a proven talent for getting things done. I am honored to step in until Jim's return. I look forward to supporting Rich's transition into his new role and then enjoying the opportunity to spend more time with my family and pursuing my other passions during retirement."
"Larry is leaving very big shoes to fill," said Mr. Mack. "His leadership has been integral to every meaningful step Mosaic has taken – from our newly-formed, non-investment grade days to the fully-independent, high-performing company we are today, focused on growth and creating shareholder value. I am looking forward to his continued good counsel and appreciate the confidence of the Board, Jim and the rest of Mosaic's leadership team."
About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single-source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. More information on the company is available at www.mosaicco.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the acquisition and assumption of certain related liabilities of the Florida phosphate assets of CF Industries, Inc. ("CF") and the ammonia supply agreements with CF; the benefits of the transactions with CF; repurchases of stock; other proposed or pending future transactions or strategic plans and other statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company's management and are subject to significant risks and uncertainties. These risks and uncertainties include but are not limited to risks and uncertainties arising from difficulties with realization of the benefits of the transactions with CF, including the risks that the acquired assets may not be integrated successfully or that the cost or capital savings from the transactions may not be fully realized or may take longer to realize than expected, or the price of natural gas or ammonia changes to a level at which the natural gas based pricing under one of the long term ammonia supply agreements with CF becomes disadvantageous to Mosaic; customer defaults; the effects of Mosaic's decisions to exit business operations or locations; the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic's international operations and those of joint ventures in which Mosaic participates, including the risk that protests against natural resource companies in Peru extend to or impact the Miski Mayo mine; changes in government policy; changes in environmental and other governmental regulation, including greenhouse gas regulation, implementation of numeric water quality standards for the discharge of nutrients into Florida waterways or possible efforts to reduce the flow of excess nutrients into the Mississippi River basin or the Gulf of Mexico; further developments in judicial or administrative proceedings, or complaints that Mosaic's operations are adversely impacting nearby farms, business operations or properties; difficulties or delays in receiving, increased costs of or challenges to necessary governmental permits or approvals or increased financial assurance requirements; resolution of global tax audit activity; the effectiveness of the Company's processes for managing its strategic priorities; the ability of the Northern Promise joint venture among Mosaic, Ma'aden and SABIC to obtain project financing in acceptable amounts and upon acceptable terms, the future success of current plans for the joint venture and any future changes in those plans; adverse weather conditions affecting operations in Central Florida, the Mississippi River basin, the Gulf Coast of the United States or Canada, and including potential hurricanes, excess heat, cold, snow, rainfall or drought; actual costs of various items differing from management's current estimates, including, among others, asset retirement, environmental remediation, reclamation or other environmental regulation, Canadian resources taxes and royalties, the liabilities Mosaic assumed in the Florida phosphate assets acquisition or the cost of Mosaic's commitments to repurchase its stock; reduction of Mosaic's available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund share repurchases, financial assurance requirements and strategic investments; brine inflows at Mosaic's Esterhazy, Saskatchewan, potash mine or other potash shaft mines; other accidents and disruptions involving Mosaic's operations, including potential mine fires, floods, explosions, seismic events or releases of hazardous or volatile chemicals, as well as other risks and uncertainties reported from time to time in The Mosaic Company's reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.
SOURCE The Mosaic Company