Compass Minerals, a leading global provider of essential minerals, announced that the company has entered into a definitive agreement to sell certain of its North America micronutrient assets to Koch Agronomic Services, LLC (Koch), a subsidiary of Koch Industries, for approximately $60.25 million, payable at closing and subject to a closing inventory adjustment.
The transaction represents another strategic step by Compass Minerals to optimize its asset portfolio to focus on the company’s core operations. This includes three location-advantaged salt mines in North America and the U.K., a number of North American production and packaging facilities, and solar evaporation operations on the Great Salt Lake that produce the majority of the company’s market-leading sulfate of potash, a premium low-chloride specialty fertilizer marketed as Protassium+®.
“Today’s announcement, combined with the previously announced sale of our South America specialty plant nutrition business, highlights our strategic focus on strengthening our balance sheet and maximizing the productivity of our core operations,” said Kevin S. Crutchfield, president and CEO. “We look forward to continuing to drive value for all stakeholders while producing and marketing an array of raw and manufactured materials supporting the transportation, agricultural, chemical, food and animal nutrition sectors.”
Under the terms of the agreement, Compass Minerals will sell substantially all assets related to the company’s Wolf Trax, Rocket Seeds and Hydro Bullet micronutrient product lines to Koch. The sale agreement includes intellectual property, inventory, customer and marketing materials, and research and development projects already in progress for those product lines.
“At Koch, we strive to provide solutions to make every ton of nutrient applied more efficient than it is today, and this agreement allows us to offer a platform of innovative solutions for nutrients beyond nitrogen,” said Steve Coulter, senior vice president of Koch. “We look forward to continuing the growth of these products and supporting our customers’ micronutrients needs.”
The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions.
