Compass Minerals: Navigating Acquisition Talks Amidst Financial Turbulence

Compass Minerals is in acquisition talks with private-equity firms following a failed lithium project. The Overland Park-based company, known for producing salt, fire retardants, and fertilizers, saw a significant stock drop this year. The company is working with investment bankers to evaluate offers amidst financial challenges and environmental opposition.

Compass Minerals is reportedly in discussions with private-equity groups regarding a potential sale, according to sources familiar with the matter. This comes after the company's shares were adversely affected by a suspended lithium-mining project, leaving it valued at approximately $1.5 billion, inclusive of debt.

Sources indicate the discussions are at an advanced stage, with a potential deal on the horizon. Despite a significant 30% surge in the company's stock following news of the talks, insiders caution that the agreement is not yet guaranteed.

With ties to producing essential materials for industries like transportation and food, as well as fire retardants and fertilizers, Compass has become an acquisition target. The decline in its shares followed the halting of lithium production for electric vehicle batteries, a sector involving major players such as Ford.

(With inputs from agencies.)