FREDERICK, Md. — U.S. Silica Holdings Inc. recently announced two major deals.
The company announced a definitive agreement to acquire EP Minerals for $750 million in cash. It also has signed an agreement to sell three transloads in the Permian, Eagle Ford and Appalachian Basins to CIG Logistics for $75 million in cash.
EP Minerals — with sales of over $200 million — is a global producer of engineered materials derived from industrial minerals including diatomaceous earth, clay and perlite.
“EP Minerals checks all of the boxes in terms of what we’ve been looking for in an attractive, adjacent business to our (Industrial and Specialty Products) segment,” said Bryan Shinn, U.S. Silica president and chief executive officer. “It is a rare find with an attractive market structure and has industry-leading margins with exciting opportunities to grow sales.
EP Minerals’ unique industrial minerals are used as filter aids, absorbents and functional additives for a variety of industries including food and beverage, biofuels, recreational water, oil and gas, farm and home, landscape, sports turf, paint, plastics, and insecticides. The company’s facilities are in Nevada, Oregon, Nebraska, Tennessee, Alabama and Mississippi.
The transaction is expected to be accretive in the fourth quarter of 2018 and is expected to close in the second quarter of 2018.
In addition, U.S. Silica’s agreement to sell three transloads to CIG Logistics was expected to close by the end of this past March, pending financing.
The three facilities are near Odessa, Texas; San Antonio, Texas; and Benwood, W.Va. They comprise approximately 70,000 tons of storage capacity. As part of the agreement, U.S. Silica will continue to service customer needs through the transloads, which CIG will now own and operate.
U.S. Silica Holdings, Inc., a member of the Russell 2000, is a leading producer of commercial silica used in the oil and gas industry, and in a wide range of industrial applications.