Compass Minerals announces $252M investment from Koch Industries unit

Mine drill platforms


Compass Minerals (NYSE:CMP) said Wednesday Koch Minerals & Trading (KM&T) will invest $252M in the firm to support phase-one development of its 2.4 mMT lithium carbonate equivalent (LCE) Great Salt Lake resource and debt reduction.

KM&T is a global trading, logistics and investment firm and a unit of Koch Industries.

KM&T will buy 6.8M CMP shares at $36.87/share, resulting in total proceeds of $252M.

The private placement is expected to close in Q4.

After the transaction closes, KM&T will own ~17% of CMP's outstanding stock and can appoint two additional members to CMP's board.

~$200M of the investment will be used to advance the first phase of CMP's sustainable lithium development project, representing ~75% of total phase-one funding needs.

CMP expects the project's annual commercial production capacity to ultimately be ~35 kMT LCE, with an initial phase-one capacity of ~11 kMT LCE coming online by 2025.

KM&T and CMP will also explore value creation opportunities across CMP's broader operational platform by leveraging the capabilities of Koch Industries' operating subsidiaries.

CMP expects to use the remaining $52M of proceeds from the KM&T investment to reduce debt.

Recommended For You

Comments (3)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.