Dow Chemical (DOW) filed its 8K regarding tis agreement to sell it s recently acquired Morton Salt division.
Morton had annual sales last year of $1.2bn and earnings before interest, tax, depreciation and amortization (EBITDA) of $270m meaning Dow received 6.2 times EBITDA for the asset, a very good price especially in the current environment.
Disclosure (“none” means no position):Long Dow
One reply on “Dow Files 8K in Morton Salt Sale”
It's definitely a nice premium to where Compass Minerals (CMP) trades (~5.5x EBITDA). Not sure what has driven up profits so much over the past few years though. You'd think supply/demand would be pretty steady over time.
EBIT doubled for CMP last year:
http://www.rocketfinancial.com/Overview.aspx?fID=5357&pw=144597