By Anirban Sen and Ernest Scheyder
(Reuters) -Compass Minerals is in talks with private-equity companies to promote itself, three sources conversant in the matter mentioned, after an aborted lithium-mining undertaking hit shares of the minerals producer, which is value about $1.5 billion together with debt.
Overland Park, Kansas-based Compass has been working with its funding bankers for a number of weeks to guage acquisition curiosity from a number of buyout companies, the sources mentioned, requesting anonymity because the discussions are confidential.
The talks are superior and a deal may very well be signed within the coming weeks, the sources mentioned. However they warned a deal was not sure.
The corporate’s shares jumped greater than 30% on Friday after Reuters reported its talks with potential suitors.
A spokesperson for the corporate declined to remark.
Compass produces salt for the transportation and meals industries, in addition to fireplace retardants and fertilizers.
Compass grew to become an acquisition goal after its shares misplaced greater than half their worth this 12 months as much as Thursday’s shut. The corporate shut down its lithium unit, which used to supply electric-vehicle battery metallic for automakers resembling Ford Motor (NYSE:), disappointing traders.
Earlier this 12 months, Compass canceled plans to develop a big lithium undertaking in Utah after going through intense opposition from regulators, who argued it will have a detrimental environmental impression on the Nice Salt Lake.
Delicate climate has additionally harm its mineral salts enterprise in its most up-to-date quarterly outcomes. In Might, the corporate mentioned it will scale back its debt pile and never pay out dividends to unlock money.
For the quarter ended June 30, Compass’ income fell barely to $203 million, whereas it swung to a internet lack of $43.6 million.
