Stone Canyon Industries Holdings closed its US$2 billion acquisition of Overland Park, Kansas and Kitchener-Ontario based Kissner Group Holdings LP, a producer and supplier of salt. The sellers included Metalmark Capital Holdings and Silvertree-KMC II, a venture between Silverhawk Capital Partners and Demetree Salt.
LOS ANGELES, April 1, 2020 /PRNewswire/ — Stone Canyon Industries Holdings LLC (“SCIH”) today announced that it has closed the previously announced acquisition of the business of Kissner Group Holdings LP (“Kissner”), a leading pure-play producer and supplier of salt in North America, for a purchase price of $2.0 billion.
The acquisition was funded with a $900 million first lien term loan led by Morgan Stanley, Bank of America, BMO Capital Markets, Goldman Sachs, KKR Capital Markets, and Citizens Bank; $200 million in a second lien term loan led by Canyon Partners, LLC; and more than $900 million of equity from SCIH and Kissner Management and their affiliates. Sellers include Metalmark Capital Holdings LLC and Silvertree-KMC II LP, a venture between Silverhawk Capital Partners and Demetree Salt, LLC.
“We are pleased to welcome Kissner’s employees and management team to SCIH,” said James Fordyce, Co-CEO of SCIH. “We look forward to applying our long-term growth-oriented business model to the success created by the Kissner team. This acquisition represents another important step in our plan to build a diversified industrial conglomerate.”
“We’re very excited about the growth opportunities that lie ahead of Kissner in light of our new partnership with SCIH,” said Mark Demetree, Executive Chairman and CEO of Kissner. “We look forward to continuing to improve Kissner’s capabilities to deliver high quality products and service to our customers.”
BMO Capital Markets and Morgan Stanley & Co. LLC served as financial advisors to SCIH and Gibson, Dunn & Crutcher LLP and Torys LLP served as legal advisors. Harris Williams LLC served as financial advisor to the Sellers and Davis Polk & Wardwell LLP, Bennett Jones LLP and Finn, Dixon & Herling LLP served as legal advisors.
Headquartered in Overland Park, Kansas, Kissner is a leading, vertically integrated bulk salt, specialty salt and evaporated salt producer focused on governmental and commercial customers across the United States and Canada. Kissner owns and operates two rock salt mines located in Detroit, Michigan and Lyons, Kansas, an evaporated salt business (US Salt), which has a refinery in Watkins Glen, New York, three salt production facilities co-located on potash mines in Western Canada, multiple packaging facilities, and a network of distribution and storage terminals located throughout the United States.
About Stone Canyon Industries Holdings
Stone Canyon Industries Holdings (“SCIH”) is a global industrial holding company designed to “buy, build and hold” for the long term, with a strategy focused on acquiring and operating market leading companies. SCIH was founded by Co-CEOs Adam Cohn and James Fordyce. SCIH companies operate in essential industries that provide mission-critical products and services to customers around the world. SCIH seeks to build out industrial verticals in stable and mature industries that possess favorable economic dynamics; a fragmented industry poised to create or strengthen a market leader through consolidation; and an opportunity to build a substantial company that will make a difference. For more information, please visit www.scihinc.com.