Compass Minerals attracts takeover interest from buyout firms, sources say

Compass Minerals International

15/11/2024 17:56

By Anirban Sen and Ernest Scheyder
       Nov 15 (Reuters) - Compass Minerals  CMP.N  is in talks
with private-equity firms to sell itself, three sources familiar
with the matter said, after an aborted lithium-mining project
hit shares of the minerals producer, which is worth about $1.4
billion including debt.
    Overland Park, Kansas-based Compass has been working with
its investment bankers for several weeks to evaluate acquisition
interest from several buyout firms, the sources said, requesting
anonymity as the discussions are confidential.  
    The talks are at an advanced stage and a deal could be
signed in the coming weeks, the sources said. But they warned a
deal was not certain. 
    A spokesperson for Compass declined to comment. 
    Compass Minerals produces salt for the transportation and
food industries, as well as fire retardants and fertilizer.
    Compass became an acquisition target when its shares lost
more than half their value this year, after it shut down its
lithium unit, which used to produce electric-vehicle battery
metal for automakers such as Ford Motor  F.N . 
    This year, Compass canceled plans to develop a large lithium
project in Utah after facing intense opposition from regulators,
who argued it would have a detrimental environmental impact on
the Great Salt Lake. 
    Mild weather has also hurt its mineral salts business in its
most recent quarterly results. In May, the company said it would
reduce its debt pile and not pay out dividends to free up cash. 
    For the quarter ended June 30, Compass' revenue fell
slightly to $203 million, while it swung to a net loss of $43.6
million. 

 (Reporting by Anirban Sen in New York and Ernest Scheyder in
Houston; Editing by Rod Nickel)
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