Back to News
Scoops & Exclusives

Cargill to Offload Deicing Salt Businesses

|
Published: August 15th, 2023
Teasers have been distributed for a selection of assets that generate about $375 million of revenue, The Deal has learned.

Private agricultural and chemical products giant Cargill is looking to offload a selection of U.S. deicing salt businesses, The Deal has learned.

The company is working with advisers on a sale process for a selection of assets within its deicing technologies segment that generate roughly $40 million of Ebitda on about $375 million in revenue, according to people who have viewed marketing materials for the business.

Deutsche Bank, which has recent experience selling deicing salt businesses, has been tapped for the Cargill process.

The assets on the block consist of two backwards-integrated facilities, which mine, process and transport bulk deicing salts to municipalities, government agencies and private commercial businesses across the U.S. for use on roadways during winter storms. Cargill is selling its Cayuga Salt Mine in Lansing, N.Y., as well as its Cleveland salt operations. The bulk of the assets’ profits are generated from the New York mine, one of the sources said.

The sale would effectively represent an exit from the salt mining business for Cargill, given it closed its third mine in Avery Island, La., in 2022.

It couldn’t immediately be learned, however, if Cargill will seek long-term supply contracts with the future owners of the mines or otherwise remain involved in the deicing salt supply chain more broadly.

Minneapolis-based Cargill, which primarily supplies sodium chloride rock salt, has boasted of strides in the deicing salt industry in recent years by marketing a less corrosive and more environmentally friendly pre-wet sodium chloride product that uses a liquid magnesium chloride, along with corrosion inhibitors, coloring agents and leaching inhibitors.

Cargill’s deicing technologies business also supplies anti-icing brines, or liquid salt solutions made up of calcium chloride, sodium chloride and magnesium chloride, as well as brine making equipment.

Nevertheless, Cargill’s sale effort continues the recent theme of large chemicals companies cleaning up their portfolios by exiting decades-old chemistries, which in some instances are viewed as less environmentally friendly. Often, strategics appear hopeful that private equity firms with a sweet tooth for attractive cash flows will be able to pass the investments off to their increasingly ESG-conscious limited partners.

Cargill and Deutsche Bank officials did not respond to requests for comment.

Editor’s note: The original version of this article, including advisers and other details, was published on The Deal’s premium subscription website on July 20. For access, log in to TheDeal.com or use the form below to request a free trial.

This Content is Only for The Deal Subscribers

The Deal provides actionable, intraday coverage of mergers, acquisitions and all other changes in corporate control to institutional investors, private equity, hedge funds and the firms that serve them.

If you’re already a subscriber, log in to view this article here.

More From Scoops & Exclusives

Private Cos.

Reliant Boosts Residential Parking Management Services

By Nikitha Sattiraju
|
Published: August 14th, 2024
The founder-owned parking management platform is adding more features to further monetize parking spaces and integrating its software with other property services as investors circle the company amid rising interest in the sector.
Private Equity

Bending Spoons Acquires PE-Backed WeTransfer

By Sunaina Agarwal
|
Published: August 9th, 2024
The mobile technology and app development company acquires the Dutch digital file sharing and collaboration platform for an undisclosed sum. The Deal named WeTransfer as ripe for a potential exit last May.
Private Equity

Summit Partners Sells MercuryGate to KKR's Körber

By Narayani Srinivasan
|
Published: August 9th, 2024
Summit Partners acquired the North Carolina-based logistics management services provider from Warburg Pincus in August 2018, and The Deal tabbed it as ripe for an exit last August.