Stone Canyon Industries Holdings LLC (SCIH) has completed its previously announced acquisition of the business of Kissner Group Holdings LP, a leading pure-play producer and supplier of salt in North America, from Metalmark Capital Holdings LLC and Silvertree-KMC II LP for US $2.0 billion.
The acquisition was funded with a US $900 million first-lien term loan led by Morgan Stanley, Bank of America, BMO Capital Markets, Goldman Sachs, KKR Capital Markets, and Citizens Bank; US $200 million in a second lien term loan led by Canyon Partners, LLC; and more than US $900 million of equity from SCIH and Kissner Management and their affiliates.
Cambridge, Ontario based Kissner Group Holdings LP is the parent company of Kissner Milling Company Limited and is owned by Metalmark Capital Holdings LLC, Silvertree‐KMC II LP, a venture between Silverhawk Capital Partners and Demetree Salt, LLC, and the Kissner management team.
Overland Park, Kansas based 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.
Metalmark Capital, Demetree Salt, LLC acquired Kissener in May 2015 from TorQuest Partners and Silverhawk Capital Partners, GoldPoint Partners and BMO Capital Partners.
Kissener has since acquired B.S.C. Holdings Inc. (2015), the parent company of both Central Salt, L.L.C. and Lyons Salt Company, and US Salt LLC (2017) from Crestwood Equity Partners LP (NYSE: CEQP).
In 2019, Kissener acquired Saskatoon, Saskatchewan based NSC Minerals from Altas Partners which acquired NSC in October 2019 from Wynnchurch Capital which in acquired it in December 2011 from TriWest Capital Partners.
Founded by Co-CEOs Adam Cohn and James Fordyce, Los Angeles, California based Stone Canyon Industries Holdings 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 companies operate in essential industries that provide mission-critical products and services to customers around the world.
SCIH investors include Ontario Teachers’ Pension Plan (OTPP), Public Sector Pension Investment Board (PSP Investments), Mubadala Investment Company, Eldridge Industries, The Olayan Group, and many prominent family offices.
photo credit: Kissner Group Holdings
News Release
Stone Canyon Industries Holdings Closes $2 Billion Acquisition of Kissner Group Holdings
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.
SOURCE Stone Canyon Industries Holdings LLC