FREDERICK, Md., March 19, 2018 /PRNewswire/ -- U.S. Silica Holdings, Inc. (NYSE: SLCA) announced today 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 this month, pending financing.
The three facilities are located near Odessa, Texas, San Antonio, Texas and Benwood, W. Va., and comprise approximately 70 thousand 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.
Commenting on the transaction, U.S. Silica President and Chief Executive Officer Bryan Shinn said, ''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. 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."
Simmons & Company International, Energy Specialists of Piper Jaffray, served as exclusive financial advisor to U.S. Silica in the transaction.
About U.S. Silica
U.S. Silica Holdings, Inc., a member of the Russell 2000, is a leading producer of commercial silica used in the oil and gas industry, and in a wide range of industrial applications. Over its 118-year history, U.S. Silica 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 our end markets. The Company currently operates nine industrial sand production plants and eight oil and gas sand production plants. The Company is headquartered in Frederick, Maryland and also has offices located in Chicago, Illinois and Houston, Texas.
U.S. Silica Holdings, Inc.
Michael Lawson
Vice President of Investor Relations and Corporate Communications
(301) 682-0304
[email protected]
Nick Shaver
Investor Relations Manager
281-394-9630
[email protected]
View original content with multimedia:http://www.prnewswire.com/news-releases/us-silica-announces-sale-of-transload-assets-to-cig-logistics-300616090.html
SOURCE U.S. Silica Holdings, Inc.