Kissner Group, a producer of bulk salt and specialty packaged salt products, has agreed to acquire US Salt from Crestwood Equity Partners. Kissner Group is a portfolio company of Metalmark Capital. The transaction is expected to be completed by the end of 2017.
US Salt is mining and salt production company located in Watkins Glen, NY. The facility produces high-quality food, pharmaceutical and chemical feedstock grade salt. Founded in 1893, US Salt utilizes solution mining to create salt brine from underground deposits lying 2,000 to 2,800 feet beneath the surface. The brine is mechanically evaporated to create evaporated salt, which is nearly 100 percent pure sodium chloride. US Salt’s customers include retailers, distributors and end-users in the consumer food, food processing, water conditioning, pharmaceutical, industrial and agricultural industries (www.ussaltllc.com).
Metalmark Capital, in partnership with Silverhawk Capital Partners, Demetree Salt, and members of the Kissner management team, acquired Kissner Group in May 2015 from TorQuest Partners.
“US Salt is a highly complementary and welcome addition to our company,” said Mark Demetree, Executive Chairman and Chief Executive Officer of Kissner Group. “US Salt, with its leading position in providing evaporated salt to numerous end markets, diversifies our product offering while expanding our ability to meet the needs of our customers.” Upon completion of the transaction, US Salt’s salt refinery in Watkins Glen will remain fully operational and US Salt will continue to operate under its existing name as a subsidiary of Kissner.
Kissner Group is a producer and distributor of bulk rock salt and packaged specialty deicing products. Kissner owns and operates two rock salt mines located in Detroit, MI and Lyons, KS. According to the company, its vertically-integrated supply chain for packaged deicing products makes Kissner one of the most cost-competitive producers and distributors in its industry. Kissner is headquartered in Overland Park, KS (www.kissner.com).
“With US Salt, we will have increased financial scale and flexibility with non-weather correlated and non-seasonal cash flow to supplement our existing de-icing business,” added Mr. Demetree. “I’ve known the leadership at US Salt for some time, and I look forward to welcoming them to the Kissner team as we enter our next phase of growth together.”
Metalmark Capital was established by the principals of Morgan Stanley Capital Partners (MSCP) to manage the Metalmark Capital and MSCP funds. Since 1986, the Metalmark Capital and MSCP funds have invested $7 billion of equity capital in over 100 companies. Sectors of interest include healthcare, energy and industrials. Metalmark Capital manages funds with $3.7 billion in aggregate capital commitments. The firm is based in New York (www.metalmarkcapital.com).
Crestwood Equity Partners (NYSE: CEQP), the seller of US Salt, is a publicly traded master limited partnership that owns and operates midstream energy assets located primarily in the Marcellus Shale, Bakken Shale, Delaware Permian Basin, PRB Niobrara Shale, Barnett Shale and Fayetteville Shale. The firm is based in Houston (www.crestwoodlp.com).
© 2017 Private Equity Professional | October 31, 2017
