U.S. Silica Acquired for $1.85 Billion

U.S. Silica Holdings, Inc. has announced a definitive agreement to be acquired by funds managed by affiliates of Apollo in an all-cash transaction valued at approximately $1.85 billion. Under the terms of the agreement, U.S. Silica stockholders will receive $15.50 per share in cash, representing an 18.7% premium to the company’s closing share price of $13.06 on April 25, 2024, and a 33.0% premium to the company’s 90-day volume-weighted average share price for the period ended April 25, 2024.

The transaction, which has been unanimously approved by U.S. Silica’s board of directors, is expected to close in the third quarter of 2024, subject to customary closing conditions, including approval by U.S. Silica stockholders and receipt of regulatory approvals.

In a separate press release issued today, U.S. Silica also announced its first quarter 2024 financial results. However, due to the announced transaction with Apollo funds, U.S. Silica has canceled the associated earnings conference call previously scheduled for today.

U.S. Silica Holdings, Inc. is a global performance materials company and a leading producer of commercial silica used in the oil and gas industry and in a wide range of industrial applications. The company has developed core competencies in mining, processing, logistics, and materials science, enabling it to produce and cost-effectively deliver over 800 diversified products to customers across end markets.

Apollo, on the other hand, is a high-growth, global alternative asset manager with approximately $651 billion of assets under management as of December 31, 2023.

The transaction is not subject to a financing condition and includes a 45-day “go-shop” period that permits U.S. Silica and its financial advisor to actively initiate, solicit, and consider alternative acquisition proposals from third parties. U.S. Silica’s board of directors will have the right to terminate the agreement to enter into a superior proposal, subject to the terms and conditions of the agreement.

The company has 26 operating mines and processing facilities and two additional exploration stage properties across the United States and is headquartered in Katy, Texas. Upon completion of the transaction, the company’s common stock will no longer be listed on the New York Stock Exchange, and the company will become a private company, continuing to operate under the U.S. Silica name and brand, led by Bryan Shinn and the current executive team. As a result of these announcements, the company's shares have moved 20.1% on the market, and are now trading at a price of $15.69. If you want to know more, read the company's complete 8-K report here.

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