U.S. Silica Completes Transaction with Apollo Funds
U.S. Silica Holdings, Inc. (SLCA) has been acquired by funds managed by affiliates of Apollo (NYSE: APO) in a previously announced transaction. The company will continue to operate under the U.S. Silica name and brand, with Bryan Shinn and the existing executive team remaining in leadership roles. As part of the deal, shareholders will receive $15.50 per share in cash for each share of U.S. Silica common stock owned. Following the transaction completion, U.S. Silica's common stock has ceased trading on the New York Stock Exchange.
The acquisition marks a new chapter for U.S. Silica, a diversified minerals company and leading last-mile logistics provider to the oil and gas industry. Both parties express optimism about future growth opportunities, with Apollo highlighting U.S. Silica's high-quality reserve base and culture of innovation as key strengths.
U.S. Silica Holdings, Inc. (SLCA) è stata acquisita da fondi gestiti da affiliati di Apollo (NYSE: APO) in una transazione precedentemente annunciata. L'azienda continuerà a operare con il nome e il marchio U.S. Silica, con Bryan Shinn e il team esecutivo attuale che rimarranno in ruoli di leadership. Come parte dell'accordo, gli azionisti riceveranno $15,50 per azione in contante per ogni azione di comune U.S. Silica posseduta. Dopo il completamento della transazione, le azioni comuni di U.S. Silica hanno smesso di essere negoziate alla Borsa di New York.
L'acquisizione segna un nuovo capitolo per U.S. Silica, un'azienda di minerali diversificati e fornitore di logistica all'ultimo miglio per l'industria del petrolio e del gas. Entrambe le parti esprimono ottimismo riguardo alle future opportunità di crescita, con Apollo che sottolinea la base di riserve di alta qualità di U.S. Silica e la sua cultura dell'innovazione come punti di forza chiave.
U.S. Silica Holdings, Inc. (SLCA) ha sido adquirida por fondos gestionados por afiliados de Apollo (NYSE: APO) en una transacción previamente anunciada. La empresa continuará operando bajo el nombre y la marca U.S. Silica, con Bryan Shinn y el equipo ejecutivo actual manteniendo sus roles de liderazgo. Como parte del acuerdo, los accionistas recibirán $15.50 por acción en efectivo por cada acción de la acción común de U.S. Silica que posean. Tras la finalización de la transacción, las acciones comunes de U.S. Silica han dejado de cotizar en la Bolsa de Valores de Nueva York.
La adquisición marca un nuevo capítulo para U.S. Silica, una empresa de minerales diversificados y proveedor líder de logística de última milla para la industria del petróleo y el gas. Ambas partes expresan optimismo sobre las oportunidades de crecimiento futuro, con Apollo destacando la base de reservas de alta calidad de U.S. Silica y su cultura de innovación como fortalezas clave.
U.S. 실리카 홀딩스(주) (SLCA)는 아폴로 계열사가 관리하는 펀드에 의해 인수되었습니다 (NYSE: APO) 라고 발표된 거래의 일환으로. 회사는 U.S. 실리카라는 이름과 브랜드로 계속 운영되며, 브라이언 신(Bryan Shinn)과 기존 경영진은 리더십 역할을 유지합니다. 거래의 일환으로, 주주는 보유한 U.S. 실리카 일반 주식 한 주당 15.50달러의 현금을 받게 됩니다. 거래 완료 후, U.S. 실리카의 일반 주식은 뉴욕 증권 거래소에서 거래가 중지되었습니다.
이번 인수는 미네랄 다변화 기업이자 석유 및 가스 산업의 마지막 마일 물류 공급업체로 활약하는 U.S. 실리카의 새로운 장을 연 것입니다. 양측은 향후 성장 기회에 대한 낙관적인 의견을 표명하며, 아폴로는 U.S. 실리카의 고품질 매장량과 혁신 문화가 핵심 강점이라고 강조했습니다.
U.S. Silica Holdings, Inc. (SLCA) a été acquise par des fonds gérés par des affiliés d'Apollo (NYSE: APO) dans le cadre d'une transaction précédemment annoncée. L'entreprise continuera à opérer sous le nom et la marque U.S. Silica, avec Bryan Shinn et l'équipe de direction actuelle restant en poste. Dans le cadre de l'accord, les actionnaires recevront 15,50 $ par action en espèces pour chaque action ordinaire de U.S. Silica détenue. À l'issue de la transaction, les actions ordinaires de U.S. Silica ont cessé d'être négociées à la Bourse de New York.
Cette acquisition marque un nouveau chapitre pour U.S. Silica, une entreprise de minéraux diversifiés et fournisseur de services logistiques de dernier kilomètre pour l'industrie pétrolière et gazière. Les deux parties expriment leur optimisme quant aux opportunités de croissance future, Apollo mettant en avant la base de réserves de haute qualité de U.S. Silica et sa culture de l'innovation comme points forts clé.
U.S. Silica Holdings, Inc. (SLCA) wurde von Fonds, die von Apollo-Affiliates verwaltet werden (NYSE: APO) in einer zuvor angekündigten Transaktion übernommen. Das Unternehmen wird weiterhin unter dem Namen und der Marke U.S. Silica operieren, wobei Bryan Shinn und das bestehende Führungsteam in ihren Führungsrollen bleiben. Im Rahmen des Deals erhalten die Aktionäre 15,50 USD pro Aktie in bar für jede gehaltene Aktie der U.S. Silica. Nach Abschluss der Transaktion haben die Stammaktien von U.S. Silica den Handel an der New Yorker Börse eingestellt.
Die Akquisition markiert ein neues Kapitel für U.S. Silica, ein diversifiziertes Mineralienunternehmen und führender Anbieter von Logistiklösungen für die letzten Meile in der Öl- und Gasindustrie. Beide Parteien äußern Optimismus über zukünftige Wachstumschancen, wobei Apollo die hochwertige Reservenbasis und die Innovationskultur von U.S. Silica als wesentliche Stärken hervorhebt.
- Acquisition by Apollo Funds provides potential for future growth and expansion
- Existing management team remains in place, ensuring continuity of operations
- Shareholders receive $15.50 per share in cash, providing immediate value
- U.S. Silica's common stock is no longer publicly traded on the NYSE
- Shareholders lose potential for future stock price appreciation as a public company
Insights
The completion of Apollo Funds' acquisition of U.S. Silica marks a significant shift in the company's ownership structure and future trajectory. This $15.50 per share all-cash transaction represents a notable premium for shareholders, reflecting Apollo's confidence in U.S. Silica's potential.
From a financial perspective, this deal is particularly intriguing. U.S. Silica, a key player in the minerals and oil & gas logistics sector, now has the backing of Apollo's substantial resources and expertise. This could potentially accelerate the company's growth strategies and enhance its market position.
However, investors should note that U.S. Silica will no longer be publicly traded. This limits the ability for retail investors to directly participate in the company's future growth. The delisting from the NYSE also removes the regular financial disclosures that public companies are required to make, potentially reducing transparency for industry watchers.
The retention of the existing management team, led by CEO Bryan Shinn, suggests continuity in operations and strategy. This could be seen as a positive sign, indicating that Apollo values the current leadership's vision and execution capabilities.
Looking ahead, the key areas to watch will be how U.S. Silica leverages Apollo's resources to expand its operations, particularly in its core businesses of mineral production and last-mile logistics for the oil and gas industry. The mention of "future growth" in the statements from both parties hints at potential expansions or acquisitions in the pipeline.
This acquisition by Apollo Funds signifies a broader trend of private equity interest in the minerals and energy sectors. U.S. Silica's strong position in both industrial minerals and oil & gas logistics makes it an attractive target in a market that's seeing increased demand for these services.
The transaction comes at a time when the oil and gas industry is experiencing a resurgence, with increased drilling activity driving demand for fracking sand and related logistics services. U.S. Silica's "last-mile logistics" capabilities are particularly valuable in this context, as efficient supply chain management becomes increasingly critical in the energy sector.
Moreover, the industrial minerals segment of U.S. Silica's business offers diversification and growth potential beyond the cyclical oil and gas market. With applications in industries ranging from glass manufacturing to foundry operations, this segment could be a key focus area for future expansion under Apollo's ownership.
The $15.50 per share purchase price suggests Apollo sees significant upside potential in U.S. Silica's business model and market position. This deal could potentially trigger increased M&A activity in the sector, as competitors and investors reassess the value of similar companies.
Going forward, it will be important to monitor how U.S. Silica balances its dual focus on minerals and energy logistics and whether Apollo pushes for a shift in strategy or prioritization of certain business segments. The company's ability to innovate and adapt to changing market demands, particularly in the context of energy transition trends, will be key to its long-term success under private ownership.
Mr. Shinn, Chief Executive Officer of U.S. Silica, said, "The closing of this transaction with Apollo Funds begins an exciting new chapter in the storied history of U.S. Silica. In Apollo Funds, we have found an experienced partner who shares with us an aligned vision for future growth. Our ability to take this step from a position of strength is a testament to the Company's excellent foundation and the dedication of our employees. We look forward to executing on the growth opportunities in front of us."
Gareth Turner, Partner at
Transaction Details
Pursuant to the terms of the transaction, an affiliate of Apollo Funds acquired all of the outstanding shares of U.S. Silica stock. Shareholders are entitled to receive
Advisors
Piper Sandler & Co. acted as a financial advisor to U.S. Silica, and Morrison & Foerster LLP served as U.S. Silica's legal counsel. Wachtell, Lipton, Rosen & Katz served as legal counsel and BNP Paribas Securities Corp and Barclays served as financial advisors to Apollo Funds.
About U.S. Silica
U.S. Silica Holdings, Inc. is a global performance materials company and is a member of the Russell 2000. The Company is a leading producer of commercial silica used in the oil and gas industry and in a wide range of industrial applications. Over its 124-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 800 diversified products to customers across our end markets.
U.S. Silica's wholly-owned subsidiaries include EP Minerals and SandBox Logistics™. EP Minerals is an industry leader in the production of products derived from diatomaceous earth, perlite, engineered clays, and non-activated clays. SandBox Logistics™ is a state-of-the-art leader in proppant storage, handling and well-site delivery, dedicated to making proppant logistics cleaner, safer and more efficient. The Company has 26 operating mines and processing facilities and two additional exploration stage properties across
About
Forward-Looking Statements
This communication contains forward-looking statements. These forward-looking statements generally can be identified by phrases such as "anticipate," "believe," "expect," "estimate," "plan," "outlook" and "project" or other words or phrases of similar import. These statements are based on current expectations, estimates and projections about the industry, markets in which the Company operates, management's beliefs, assumptions made by management and the transactions described in this communication. While the Company's management believes the assumptions underlying the forward-looking statements and information contained herein are reasonable, such information is necessarily subject to uncertainties and may involve certain risks, many of which are difficult to predict and are beyond management's control. These risks include, but are not limited to, the ability to recognize the anticipated benefits of the transaction, the amount of costs, fees, expenses and charges related to the transaction and the other risks and important factors contained and identified in the Company's filings with the
The Company cautions investors not to unduly rely on any forward-looking statements. The forward-looking statements speak only as of the date of this communication. The Company undertakes no obligation or duty to update or revise any of these forward-looking statements after the date of this communication, nor to conform prior statements to actual results or revised expectations, and the Company does not intend to do so.
Ida Ashley
Vice President, Human Resources
ashleyi@ussilica.com
Apollo Contacts
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
communications@apollo.com
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SOURCE U.S. Silica Holdings, Inc.
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