By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Morton Salt’s 100-plus Bahamian employees were yesterday said to have “mixed emotions” over the operation’s potential purchase by a Grand Bahama-based energy and natural resources group.

Jennifer Brown, general secretary of the Bahamas Industrial Manufacturers & Allied Workers Union (BIMAWU), which represents the Inagua-based company’s line staff, told Tribune Business workers were unlikely to be “shocked” by the proposed sale to Lusca Group and its subsidiary, Grand Bahama Salt Company, given the frequency with which ownership has changed in the past two decades.

However, she added that this will be the first time that the name ‘Morton’ is to be dropped, with Lusca Group set to rebrand Inagua and the southern Bahamas’ largest employer as Salt Bahamas if the deal closes and all relevant government approvals are received.

Ms Brown, also the union’s former president, told this newspaper her main concern is that Morton Salt is only divesting its Bahamas operation. A rebranded Salt Bahamas will thus be a standalone operation that has to stand on its own feet, although Lusca Group said it “will enter” into a long-term agreement to supply the salt produced to its former owner, Morton USA.

The BIMAWU general secretary, who confirmed that Morton Bahamas management first informed the union and all workers of the impending sale on Tuesday this week, one day before it was formally announced, said executives confirmed that Lusca Group is linked to the Liwathon Group, which has acquired and restarted operations at Grand Bahama’s former South Riding Point oil storage terminal.

Tribune Business research found that both Lusca Group and Liwathon’s Bahamas operation share the same phone number and Grand Bahama address, at 100 Grand Bahama Highway, East End, on their respective websites. The prospective Morton Bahamas purchaser’s website also referred to “strategic storage facilities in The Bahamas and Estonia” - the precise locations where Liwathon has assets.

Lusca Group, in announcing the potential acquisition, gave few specifics on its plans and did not disclose the purchase price. However, Ms Brown said Morton Bahamas executives promised that union members’ salaries, benefits and other working terms governed by an industrial agreement that lasts until 2027 - will not be affected or altered by the deal.

Lusca Group, in confirming that its Grand Bahama Salt Company has signed an agreement to acquire 100 percent of Morton Bahamas’s shares, said in its statement: “The facility, the second-largest solar salt operation in North America, positions The Bahamas as a leading source of high-quality solar salt for international markets.

“Lusca Group will also enter into a long-term supply agreement with Morton Salt USA, securing Morton’s role as an anchor client and ensuring continuity of production and export from Inagua. Following completion, Lusca Group plans to invest substantially in the facility’s operations, improve efficiency and expand production capacity.

“This will include investments in upgrading salt quality on the island, as well as targeted investments into other on-island businesses and the local community.” Lusca Group did not respond to questions on the purchase, which were submitted by Tribune Business yesterday, before press time last night. Morton Salt was in the process of replying but did not meet last night’s deadline.

“Salt has been part of Inagua’s identity for generations, and we fully understand the history and importance of this business to the island,” said Richard Muckle, director of Lusca Group. “By rebranding and investing in the facility, we aim to honour that legacy while creating sustainable value for both our customers and the local community.”

Lusca Group added that it “is preparing a broader island-wide development plan, identifying further opportunities to support Inagua’s long-term growth and resilience. This programme, developed in close partnership with stakeholders, will be presented to the Government of The Bahamas in due course”.

The prospective buyer gave no details on how much investment it plans to make, both in Morton Salt and Inagua, but confirmed that the deal has yet to close and that it “remains subject to customary regulatory approvals”.

Ms Brown, though, said Morton Bahamas management confirmed that Lusca Group, which describes itself as “a privately-owned industrial investment holding company that “focuses on strategic investments in physical commodities and infrastructure”, with experience in storage, logistics and resource development, is linked to Liwathon and its Grand Bahama storage facility.

“I guess we have mixed emotions. We always want the best for the company,” said Ms Brown, who has now retired from working at Morton Salt. “We have a contract in place that guarantees, as far as the employees’ benefits are concerned, I think until 2027.

“As far as we know, it’s going to take 60 days before it is finalised. They only signed an agreement to say they’re going to sign an agreement for sale. It’s not finalised yet. We were told all that yesterday. They [management and their advisers] told us about the sale, who’s buying the company and that benefits will remain as is because we are under contract.

“That’s all they said just to inform us. They wanted is to know they are trying to make a deal. It’s a European company that has a company in Freeport. This will be the first time that the name of the company is giving up ‘Morton’ as a name. We’re used to it being Morton Bahamas.”

As for Lusca Group’s pledge to invest in Inagua’s community and wider economy, Ms Brown added: “As far as investing in the community, we really don’t know what the investments are and what they plan to do. My take is that any company going into a community needs to give back to the community.

“Over the next two months we should know something. I guess we’ll have to wait and see what they bring to us before we can act if we need to. Apparently the Government is aware, and everything is in its early stages. 

“I guess the employees are not really shocked. We’re used to the company being sold, but this is the first time we are changing the name. My concern is that it is just Morton Bahamas being sold. It appears it’s only the plant in Inagua that’s being sold. We’re hoping for the best.” Tribune Business was unable to obtain a response from the Government to the Morton Salt sale before press time last night.

Morton Salt generated around $1bn of annual group-wide revenues, including from its Bahamas operation, in 2020, according to a US Department of Justice press release. That was issued over the move by Stone Canyon Industry Holdings, which is now selling the Bahamian operation, to divest itself of other salt-related businesses to address competition concerns so it could acquire Morton Salt from K + S.