By Anirban Sen and Ernest Scheyder
(Reuters) -Compass Minerals is in talks with private-equity corporations to promote itself, three sources aware of the matter stated, after an aborted lithium-mining challenge hit shares of the minerals producer, which is price 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 judge acquisition curiosity from a number of buyout corporations, the sources stated, requesting anonymity because the discussions are confidential.
The talks are superior and a deal could possibly be signed within the coming weeks, the sources stated. 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 yr as much as Thursday’s shut. The corporate shut down its lithium unit, which used to supply electric-vehicle battery steel for automakers akin to Ford Motor (NYSE:), disappointing traders.
Earlier this yr, Compass canceled plans to develop a big lithium challenge in Utah after going through intense opposition from regulators, who argued it will have a detrimental environmental influence on the Nice Salt Lake.
Gentle climate has additionally harm its mineral salts enterprise in its most up-to-date quarterly outcomes. In Could, the corporate stated it will scale back its debt pile and never pay out dividends to release money.
For the quarter ended June 30, Compass’ income fell barely to $203 million, whereas it swung to a web lack of $43.6 million.
