U.S. Silica to Sell Transload Assets to CIG Logistics
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. recently announced 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 March, pending financing.
The three facilities are located near Odessa and San Antonio, Texas; and Benwood, W.V. Combined, 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.
“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,” said Bryan Shinn, president and CEO of U.S. Silica. “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.”
For more information, visit www.ussilica.com.