K+S Aktiengesellschaft completed the sale of its Americas salt business consolidated in the Operating Unit Americas to Stone Canyon Industries Holdings LLC ("SCIH"), Mark Demetree and partners.
The enterprise value amounts to USD 3.2 billion corresponding to 13.4 times the 2020 EBITDA of USD 239 million. Taking into account debt and cash, the purchase price is now approximately EUR 2.6 billion. This payment has been made today entirely in cash.
“With the completion of the sale of the Americas operating unit and the payment of the purchase price, we are taking a major step towards the reduction of our debt,” says Dr. Burkhard Lohr, Chairman of the Board of Executive Directors of K+S AG. “I sincerely would like to thank all employees of the Americas for their many years of successful cooperation. I wish the entire team as well as the new owner Stone Canyon all the best and great success for the future!”
Milestone for significant reduction in financial liabilities
With the sale of the Operating Unit Americas, K+S has implemented the most important component of the package of measures announced in December 2019. This is an important milestone in the planned reduction of debt. The net proceeds equivalent to around €2.6 billion will be entirely used to successively reduce debt. Accordingly, the level of debt (net financial debt/EBITDA) will improve significantly.
The Operating Unit Americas mainly comprises K+S Chile, acquired in 2006 and formerly known as SPL, and Morton Salt (USA), acquired in 2009, as well as Windsor Salt Ltd. (Canada).
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