OVERLAND PARK, Kan. & WATKINS GLEN, N.Y.—Kissner Group Holdings LP, the parent company of a leading, bulk salt and specialty packaged salt producer, Kissner, today announced that it will acquire US Salt LLC (“US Salt”), a leading evaporated salt business with a salt refinery in Watkins Glen, New York, from Crestwood Equity Partners LP (NYSE:CEQP). The transaction is expected to be completed by the end of 2017 (the sale price is said to be $225 million).
“US Salt is a highly complementary and welcome addition to our company,” said Mark Demetree, Executive Chairman and Chief Executive Officer of Kissner Group Holdings LP. “US Salt, with its leading position in providing evaporated salt to the consumer food, food processing, water conditioning, pharmaceutical, industrial and agricultural end-use markets, diversifies our product offering while expanding our ability to meet the needs of our customers. 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. 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.”
Upon completion of the transaction, US Salt will continue to operate under its existing name as a subsidiary of Kissner. US Salt’s salt refinery in Watkins Glen, New York, will remain fully operational.
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.
Headquartered in Overland Park, Kansas, Kissner is a leading, vertically integrated bulk salt and specialty packaged salt producer focused on governmental and commercial customers in the Great Lakes, Great Plains and Midwest regions. Kissner owns and operates two rock salt mines located in Detroit, Michigan and Lyons, Kansas. More information about Kissner can be found at http://www.kissner.com.
In an update on Tuesday, Finger Lakes 1. com reports Crestwood said that they would preserve the right to store natural gas and natural gas liquids through its ownership of Arlington Storage Co. LLC.
The statement read in part, “Crestwood has preserved its rights to store natural gas and natural gas liquids through its ownership of Arlington Storage Co. LLC and Finger Lakes LPG Storage, LLC, which were not include in the sale,” the company said in a statement emailed by Elizabeth Suman, Crestwood’s communications manager. “This will allow Crestwood the ability to provide low-cost storage services benefiting the New York market.”