Wired News – US Silica Purchases EP Minerals
Stock Monitor: General Moly Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 27, 2018 / Active-Investors.com has just released a free research report on US Silica Holdings, Inc. (NYSE: SLCA) ("US Silica"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SLCA as the Company's latest news hit the wire. On March 23, 2018, the Company announced that it has inked an agreement to acquire EP Minerals, which is a global producer of engineered materials derived from industrial minerals, for approximately $750 million in cash. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, US Silica Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Deal Details
US Silica will fund the transaction and refinance its current debt through a new seven-year, $1.280 billion committed Term Loan B credit facility, and an expanded $100 million revolving credit facility.
The transaction is expected to be accretive in Q4 2018, and is likely to close in Q2 2018.
Following the acquisition, Gregg Jones, President and Chief Executive Officer (CEO) of EP Minerals, will continue to lead the Company's management team.
Centerview Partners LLC served as investment banking advisor and Baker Botts L.L.P. served as legal advisor to US Silica.
EP Minerals Will Provide Strong Margins with Meaningful Growth Opportunities
Bryan Shinn, President and CEO of US Silica, stated that EP Minerals checks all of the boxes in terms of what the Company has been looking for in an attractive, adjacent business to its ISP segment; and that it was a rare find with an attractive market structure and has industry-leading margins with exciting opportunities to grow sales. Shinn added that EP Minerals has strong IP protection and leverages the Company's core competencies as a premier surface mining and logistics Company. EP Minerals' reliable cash flow also complements US Silica's Oil & Gas segment, while providing a robust platform for expansion and growth through organic opportunities and strategic bolt-on acquisitions.
EP Minerals Can Leverage US Silica's Mining Expertise and Differentiated Logistics Capabilities
Commenting on the acquisition, Gregg Jones expressed that EP Minerals looks forward to joining forces with US Silica and benefiting from the strength of the Company's mining expertise, differentiated logistics capabilities, and ability to capture value throughout the supply chain. Jones added that there will be opportunities for the two companies to collaborate on research and development (R&D) efforts, with EP Minerals' full R&D team helping to bring new products for both Companies to market faster.
US Silica's Last Acquisition Deal
On August 16, 2017, the Company acquired Mississippi Sand, LLC, a leading, low-cost frac sand mining and logistics Company based in St. Louis, Missouri, for approximately $95.4 million in cash. The acquisition also included an approximately one million ton-per-year dry plant located near Seagraves, Texas. US Silica uses cash on hand to fund the acquisition. The acquisition enabled US Silica to nearly double the size of its capacity from the area, and it took advantage of the multiple modes of distribution to better serve customers and enhance its competitive position in the marketplace.
About EP Minerals
Established in 1945, EP Minerals develops, manufactures, and distributes revolutionary products from diatomaceous earth, clay, and perlite blends. The Company has become Nevada's largest exporter of industrial minerals by volume, as well as a global business with offices and manufacturing plants around the world. EP Minerals is a portfolio Company of Golden Gate Capital.
About US Silica Holdings, Inc.
US Silica is a leader in industrial silica products and solutions. The Company 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 its end markets. US Silica was established in 1968 and is based in Frederick, Maryland.
Stock Performance Snapshot
March 26, 2018 - At Monday's closing bell, US Silica's stock declined 4.02%, ending the trading session at $25.08.
Volume traded for the day: 3.70 million shares, which was above the 3-month average volume of 2.60 million shares.
After yesterday's close, US Silica's market cap was at $2.06 billion.
Price to Earnings (P/E) ratio was at 18.77.
The stock has a dividend yield of 1.00%.
The stock is part of the Basic Materials sector, categorized under the Industrial Metals & Minerals industry. This sector was up 2.0% at the end of the session.
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