Compass Minerals International, Inc. (NYSE: CMP) disclosed that it has inked an agreement with a unit of Koch Industries, Koch Agronomic Services, LLC. As per the agreement, Compass Minerals will divest its North America micronutrient assets for nearly $60.25 million, due at execution of the agreement and dependent on the inventory modification.
As per the agreement, Compass Minerals have decided to divest considerably all assets attached to the firm’s Wolf Trax, Rocket Seeds, and Hydro Bullet micronutrient product lines to Koch. The sale deal includes intellectual property, inventory, customer and marketing materials, and R&D initiatives already underway for those product ranges.
This divestment decision of the firm has demonstrated the firm’s commitment to enhance its asset portfolio to concentrate on the main operations of the firm. These operations consist of three location-advantaged salt mines in North America and the U.K., several North American production and packaging facilities, and solar evaporation operations on the Great Salt Lake that generate the majority of the top sulfate of potash of the firm.
Compass Minerals disclosed that this decision and the earlier declared decision of the divestment of South America specialty plant nutrition business demonstrate the commitment of the firm as it is striving to strengthen its balance sheet and increase the productivity of its important businesses.
Furthermore, the firm has revealed that it is endeavoring to create value for its shareholders. The deal is anticipated to execute in the second quarter of 2021. The closure of the deal is dependent on the fulfillment of certain traditional conditions.