Koch Minerals & Trading, a logistics and investment company and a subsidiary of Koch Industries, has made an investment of $252 million in Compass Minerals.
Compass Minerals is focused on safely delivering minerals for nature’s challenges to customers and communities, like salt products for roadways or plant nutrition products. With this investment, Compass Minerals is expected to use approximately $200 million to advance phase one of its 2.4 mMT lithium carbonate equivalent Great Salt Lake resource and debt reduction. The companies will also use the capabilities of Koch Industries subsidiaries to explore value creation opportunities for Compass Minerals.
“Koch Minerals & Trading is excited to partner with fellow Kansas-based company, Compass Minerals, a leading producer of salt, fertilizers and other essential products and materials,” comments Jon Chisholm, KM&T vice president. “We admire Compass Minerals for its values and its vision to produce products that help keep people safe, feed the world and enrich lives. KM&T seeks partners like Compass Minerals to apply its bulk commodity capabilities to create greater value for customers, communities and shareholders. KM&T will also be working closely with Compass Minerals and other Koch companies to unlock a significant lithium resource at Compass Minerals’ Great Salt Lake facility and become one of the first major U.S.-based lithium producers.”
Perella Weinberg Partners LP acted as sole financial advisor to Compass Minerals in the transaction and Cleary Gottlieb Steen & Hamilton LLP acted as the company’s legal advisor. Jones Day acted as legal advisor for KM&T.