In October 2020, K+S Aktiengesellschaft signed a contract to sell its Americas salt business to Stone Canyon Industries Holdings (SCIH), Mark Demetree and affiliates for US$3.2Bn (equivalent to 12.5 times the 2019 EBITDA of US$257M). The transaction is expected to take place in summer 2021, subject to customary closing conditions, including approvals from regulatory authorities.
In April 2020, SCIH had acquired Kissner Group Holdings of Canada from Metalmark. Kissner has three US salt operations (two rock and one PDV) that have capacity of around 2.5Mtpy for rock salt and 340ktpy for PDV. Kissner also has salt processing operations in Canada, located at Rocanville and Vanscoy, Saskatchewan, that have a combined capacity of 220ktpy. These operations use co-product rock salt from potash mines run by Nutrien.
The sale of K+S Americas to SCIH is the biggest change in ownership within the North American salt industry since K+S bought Morton Salt in 2009. SCIH will potentially have a salt capacity of around 26Mtpy divided between operations in the Bahamas, Brazil, Chile, Canada and USA, comprising nine rock salt mines, eight PDV and four solar salt plants. However, SCIH may face difficulties in gaining approvals for the deal from regulatory authorities given its potential position in a number of key markets, such as de-icing in the USA.
Roskill’s NEW Salt: Outlook to 2030, 19th Edition report will be published in November 2020. Click here to download the brochure or sample pages for the report, or to access further information.