Compass Minerals: Navigating a Sale Amidst Challenges

Compass Minerals is exploring selling itself after difficulties, including a failed lithium project, impacted its shares. The company is worth around $1.4 billion with debt. Acquisitions talks with private-equity firms are advanced, though not guaranteed. Issues include environmental opposition and financial challenges affecting its mineral salts business.

Compass Minerals, the Overland Park, Kansas-based minerals producer, is negotiating a potential sale with private-equity firms, multiple sources familiar with the development have revealed. This comes in the wake of a halted lithium-mining venture that has adversely affected the company's share values, currently estimated at $1.4 billion including debt.

Sources who requested anonymity due to the confidentiality of the discussions indicated that Compass has engaged investment bankers and has entered advanced talks with several buyout firms. Although an agreement could be formalized soon, the sources cautioned that negotiations remain uncertain.

Compass, known for supplying salt to transportation and food industries, became an acquisition target following a dramatic share value decline sparked by the closure of its lithium operation, a unit that previously provided electric-vehicle battery metal to automakers like Ford. The closure followed regulatory pushback over supposed environmental threats posed by its planned Utah project.

(With inputs from agencies.)