U.S. Silica Announces Sale of Transload Assets to CIG Logistics
FREDERICK, Md., March 19, 2018 /PRNewswire/ -- U.S. Silica Holdings, Inc. (NYSE: SLCA) announced today that is has signed an agreement to sell three transloads located in the Permian, Eagle Ford and Appalachian Basins to CIG Logistics for $75 million in cash. The transaction is expected to close by the end of this month, pending financing.
The three facilities are located near Odessa, Texas, San Antonio, Texas and Benwood, W. Va., and comprise approximately 70 thousand 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.
Commenting on the transaction, U.S. Silica President and Chief Executive Officer Bryan Shinn said, ''This sale continues our successful strategy of utilizing outstanding partners, like CIG, to manage our transloading operations while we concentrate on delivering excellent customer service. Our focus as a company remains growing and diversifying our business and managing other capital allocation priorities, including returning cash to shareholders. This transaction fits well with our priorities and I look forward to working more closely with the CIG team."
Simmons & Company International, Energy Specialists of Piper Jaffray, served as exclusive financial advisor to U.S. Silica in the transaction.
About U.S. Silica
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. Over its 118-year history, U.S. Silica has developed core competencies in mining, processing, logistics and materials science that enable it to produce and cost-effectively deliver over 200 products to customers across our end markets. The Company currently operates nine industrial sand production plants and eight oil and gas sand production plants. The Company is headquartered in Frederick, Maryland and also has offices located in Chicago, Illinois and Houston, Texas.
U.S. Silica Holdings, Inc.
Michael Lawson
Vice President of Investor Relations and Corporate Communications
(301) 682-0304
lawsonm@ussilica.com
Nick Shaver
Investor Relations Manager
281-394-9630
shavern@ussilica.com
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SOURCE U.S. Silica Holdings, Inc.
About U.S. Silica
U.S. Silica Holdings, Inc. is a performance materials company and is a member of the Russell 2000 Index. The Company is a leading producer of commercial silica used in a wide range of industrial applications and in the oil and gas industry. Over its 119-year history, U.S. Silica has developed core competencies in mining, processing, logistics and materials science that enable it to produce and cost-effectively deliver over 1,500 diversified products to customers across our end markets. U.S. Silica's wholly-owned subsidiaries include EP Minerals and SandBox Logistics™. EP Minerals is an industry leader in the production of products derived from diatomaceous earth, perlite, engineered clays, and non-activated clays. SandBox Logistics™ is a state-of-the-art leader in proppant storage, handling and well-site delivery, dedicated to making proppant logistics cleaner, safer and more efficient. The Company currently operates 27 mines and production facilities. The Company is headquartered in Katy, Texas and has offices in Frederick, Maryland, Reno, Nevada and Chicago, Illinois.