U.S. Silica Holdings announces shareholder approval for Apollo Funds acquisition

In a significant move within the industrial minerals sector, U.S. Silica Holdings, Inc. (NYSE: SLCA), a leader in diversified minerals and logistics for the oil and gas industry, confirmed that its shareholders approved the acquisition by Apollo Funds, managed by global investment powerhouse Apollo (NYSE: APO). This approval was secured during a special meeting on July 16, 2024, marking a pivotal step towards finalizing the all-cash transaction valued at approximately $1.85 billion.

Deal Highlights:

– Acquisition Price: U.S. Silica stockholders to receive $15.50 per share in cash.

– Premium Offered: 18.7% over the closing share price as of April 25, 2024.

– Closing Timeline: Expected to conclude by the end of Q3 2024.

– Shareholder Approval: Over 75% of votes in favor at the Special Meeting.

This transaction places U.S. Silica at a significant premium, reflecting an 18.7% increase over its closing price on April 25, 2024, and a 33.0% premium on the 90-day volume-weighted average price. The deal was originally announced in April 2024, and approximately 78% of the company’s outstanding shares participated in the vote.

Post-acquisition, U.S. Silica will be delisted from the New York Stock Exchange and will operate as a private entity, maintaining its brand and leadership under CEO Bryan Shinn. Charles Shaver, Chairman of the U.S. Silica Board, lauded the deal, noting the potential for substantial shareholder value and strategic growth under Apollo’s stewardship.

U.S. Silica, with a storied 124-year history in the sector, owns 26 mines and processing facilities across the United States. Its subsidiaries, including EP Minerals and SandBox Logistics, bolster its portfolio, extending its influence across the performance materials landscape.

This merger not only promises significant financial uplift for shareholders but also positions U.S. Silica for enhanced operational capabilities and expansion into new markets, particularly in the booming sectors of oil and gas and industrial applications. The combination of U.S. Silica’s operational excellence and Apollo’s financial acumen is expected to drive innovation and market penetration, reshaping the industrial minerals industry.