U.S. Silica to Acquire Sandbox Enterprises
U.S. Silica Holdings, Inc. recently announced that it has entered into a definitive agreement to acquire Sandbox Enterprises LLC.
U.S. Silica Holdings, Inc. recently announced that it has entered into a definitive agreement to acquire Sandbox Enterprises LLC. The transaction will be financed using a combination of $75 million of cash on hand and approximately $4.2 million U.S. Silica common shares. Based on the U.S. Silica closing price on August 2, 2016, the transaction is valued at $218.3 million. The acquisition is expected to be modestly accretive to 2016 EPS and generate EPS accretion of $0.20-0.30 in 2017. The transaction is expected to close later this month, subject to certain regulatory approvals.
“This transformative acquisition enables us to offer customers significantly improved transportation and operating efficiencies, a safer work environment, and significant cost savings relative to current proppant delivery systems,” said Bryan Shinn, president and CEO. “Sandbox’s proprietary delivery solution is critical to addressing the growing logistical challenges our customers face as E&P operators continue to increase the amount of proppant they use per well.”
Sandbox utilizes specially designed, patent-protected equipment and processes to service wellsite operations. In addition, the company provides field personnel for installation, training and operation as required.
“The acquisition of Sandbox aligns with our strategy of managing the entire supply chain of frac sand from the mine to the well site,” said Brad Casper, executive vice president and chief commercial officer. “Containerized delivery increases transportation efficiency and lowers delivered costs through faster truck turns and reduced jobsite congestion. We believe Sandbox has significant runway to grow its existing markets through partnerships with leading service companies, while at the same time making U.S. Silica’s logistics network even more efficient with capabilities for mobile transloading and in-basin proppant staging.”