Published On: Tue, Oct 6th, 2020

K+S AG to sell Americas salt business to SCIH and Kissner for $3.2bn

Tagged with: | | | | | |

German chemicals company (K+S AG) has agreed to divest its Americas salt business to Stone Canyon Industries Holdings (SCIH) and its affiliates for $3.2 billion.

The salt business involved in the deal primarily comprises , (USA), and K+S Windsor Salt (). Morton Salt and K+S Windsor Salt were acquired by the German chemicals company in 2009.

– Chairman of the Board of Executive Directors of K+S AG said: “With the sale of our Americas salt business, we are taking a giant step in reducing debt. We are thus creating a solid financial basis for the sustainable development of the company.

“I would like to thank our Americas team for their excellent work over the past years. I am sure that Stone Canyon will continue to develop the business successfully.”

The buyers of the K+S AG Americas salt business also include Holdings’ minority owner and CEO Mark Demetree and affiliates.

Kissner Group, which is a pure-play producer and supplier of salt in North America, was acquired by Stone Canyon Industries in February 2020. It is engaged in the production of bulk salt, specialty salt, and evaporated salt, which it suppliers to governmental and commercial customers across the US and Canada.

K+S AG to sell Americas salt business to SCIH and Kissner

K+S AG to sell Americas salt business to SCIH and Kissner. Photo courtesy of K+S Aktiengesellschaft.

James Fordyce – Co-Chairman and Co-CEO of Stone Canyon Industries said: “We are proud and excited to acquire the iconic Morton Salt brand and the family of K+S Americas products.

“The combination of the Americas salt business with SCIH’s Kissner Group Holdings allows us to expand our product offerings to consumers along with our existing government and commercial customers. The Americas salt business adds an integral component to SCIH’s long-term, growth-oriented business model.”

Morgan Stanley and Gibson, Dunn & Crutcher served as advisors for Stone Canyon Industries. Eldridge assisted Stone Canyon Industries with debt financing and structuring.

On the other hand, Deutsche Bank, RBC Capital Markets and Sullivan & Cromwell supported the transaction for K+S AG.

The transaction, which is subject to customary closing conditions and antitrust approvals, is expected to be wrapped up by summer 2021.

Related posts