FREDERICK, Md. — U.S. Silica Holdings Inc. recently completed the $750 million acquisition of EP Minerals, a global producer of engineered materials derived from industrial minerals including diatomaceous earth, clay and perlite.
The company’s 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.
‘‘This transformative acquisition achieves a key corporate objective to diversify our profit sources and add additional EBITDA from a broader industrial space to better balance our portfolio opposite our more cyclical Oil and Gas business,” said Bryan Shinn, president and chief executive officer. “EP Minerals has a very attractive market structure, is a business with strong margins and very consistent cash flows with numerous growth opportunities and a robust pipeline of new products. Bottom line, this is a very diverse company with a rare combination of advantages and strengths and we are excited about the opportunity to work with the EP Minerals team to continue to grow its market-leading business.”
The transaction is being financed by $1.28 billion in term loan facilities committed to by BNP Paribas and Barclays. The company also increased its revolving credit facility to an aggregate of $100 million.