Compass Minerals Completes Sale of South America Chemicals Business
April 20 2022 - 4:15PM
Business Wire
Compass Minerals (NYSE: CMP), a leading global provider of
essential minerals, today announced it has completed the sale of
the company’s South America chemicals business to a subsidiary of
Cape Acquisitions LLC. The sale includes all remaining Compass
Minerals operations in Brazil, concluding the company’s previously
announced plan to exit the South American market.
“We are pleased to have taken this final step in our Brazil sale
process, further optimizing our asset base and enabling additional
debt reduction,” said Kevin S. Crutchfield, president and CEO. “Our
board and senior management team remain acutely focused on
maximizing value within our core Salt and Plant Nutrition
businesses, while strategically pursuing organic opportunities to
accelerate the growth of our essential minerals portfolio into
adjacent markets.”
Upon closing of the all-cash transaction, Compass Minerals
received gross sale proceeds of approximately R$236 million, or $51
million based on current exchange rates, subject to a post-closing
adjustment. The company intends to use the proceeds from the sale
to pay down debt.
J.P. Morgan Securities LLC acted as exclusive financial advisor
to Compass Minerals in connection with the sale.
About Compass Minerals
Compass Minerals (NYSE: CMP) is a leading global provider of
essential minerals focused on safely delivering where and when it
matters to help solve nature’s challenges for customers and
communities. The company’s salt products help keep roadways safe
during winter weather and are used in numerous other consumer,
industrial, chemical and agricultural applications. Its plant
nutrition products help improve the quality and yield of crops,
while supporting sustainable agriculture. Additionally, the company
is pursuing development of a sustainable lithium brine resource to
support the North American battery market and is a minority owner
of Fortress North America, a next-generation fire retardant
company. Compass Minerals operates 12 production and packaging
facilities with nearly 2,000 employees throughout the U.S., Canada
and the U.K. Visit compassminerals.com for more information about
the company and its products.
About Cape Acquisitions LLC
Cape is an investor in the chemical industry that looks for
strategic acquisition opportunities around the globe. The company
has signed a management agreement with a subsidiary of Chlorum
Solutions LLC, an established player in the chlor-alkali industry
in Latin America. Chlorum offers an alternative approach to the
supply chain by operating small-scale plants located close to
centers of demand and has a strong focus on bringing positive
environmental and social impacts to all its operating plants.
Forward Looking Statements
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including, without limitation, statements about the company's
ability to optimize its asset base, reduce debt, maximize value,
pursue opportunities and accelerate growth and its use of proceeds.
These statements are based on the company’s current expectations
and involve risks and uncertainties that could cause the company’s
actual results to differ materially. The differences could be
caused by a number of factors including those factors identified in
the “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of the
company’s Annual and Quarterly Reports on Forms 10-K and 10-Q,
including any amendments, as well as the company’s other SEC
filings. The company undertakes no obligation to update any
forward-looking statements made in this press release to reflect
future events or developments, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220420006070/en/
Media Contact Rick Axthelm Chief Public Affairs and
Sustainability Officer +1.913.344.9198
MediaRelations@compassminerals.com
Investor Contact Douglas Kris Senior Director of Investor
Relations +1.917.797.4967 krisd@compassminerals.com
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