U.S. Silica Acquires Engineered Materials Producer EP Minerals
With sales of over $200 million, EP Minerals is a global producer of engineered materials derived from industrial minerals including diatomaceous earth (DE), clay (calcium bentonite) and perlite.
U.S. Silica Holdings, Inc. recently announced a definitive agreement to acquire EP Minerals for $750 million in cash. With sales of over $200 million, EP Minerals is a global producer of engineered materials derived from industrial minerals including diatomaceous earth (DE), clay (calcium bentonite) and perlite. Similar to U.S. Silica’s Industrial and Specialty Products (ISP) segment, EP Minerals has reportedly transformed from a commodity-based business by adding new value-added, higher-margin products to its mix, developing over 50 new products in the last three years and with 40-plus products currently in its new development pipeline.
“EP Minerals checks all of the boxes in terms of what we’ve been looking for in an attractive, adjacent business to our ISP segment,” said Bryan Shinn, president and CEO of U.S. Silica. “It is a rare find with an attractive market structure and has industry-leading margins with exciting opportunities to grow sales. It has strong IP protection and leverages our core competencies as a premier surface mining and logistics company. EP Minerals’ reliable cash flow also complements our Oil & Gas segment while providing a robust platform for expansion and growth through organic opportunities and strategic bolt-on acquisitions.”
EP Minerals’ industrial 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. The company’s facilities are located in Nevada, Oregon, Nebraska, Tennessee, Alabama and Mississippi.
“We look forward to joining forces with U.S. Silica and benefiting from the strength of the company’s mining expertise, differentiated logistics capabilities and ability to capture value throughout the supply chain,” said Gregg Jones, president and CEO of EP Minerals. “I also believe that there will be opportunities for our two companies to collaborate on research and development efforts with our full R&D team helping to bring new products for both companies to market faster.”