Compass Minerals attracts takeover interest from buyout firms, sources say
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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