09 June 2010 16:15 [Source: ICIS news]
K+S said it hired investment bank Goldman Sachs to help with a possible sale of COMPO.
COMPO supplies fertilizers, plant protection products, and potting soil, as well as speciality products for public green, horticulture, special crops, and special application in agriculture. It employs a staff of 1,100 and had revenues of about €400m ($476m) last year.
“As a result of an analysis of COMPO‘s medium to long-term market and business prospects commenced a few months ago, the board of executive directors and the supervisory board of K+S concluded that a consolidation within this industry will be required,” K+S said in a statement.
“Due to its strong market presence, COMPO is in a very good starting position to emerge successfully out of this phase of changes,” it added.
K+S would over the coming months develop a concept for a possible carve-out of COMPO from the K+S group, it said.
K+S bought COMPO in 1999 from BASF in a €215m deal. BASF holds a stake of about 10% in K+S, according to K+S’ website.
Last year, Kassel-based K+S acquired Morton Salt from Dow Chemical to become the world's largest salt producer.
($1 = €0.84)
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