U.S. Silica Holdings, Inc. to be acquired by Apollo Funds for $1.85bn

In a major development in the industrial minerals sector, U.S. Silica Holdings, Inc. (NYSE: SLCA), a diversified industrial minerals company and a leader in last-mile logistics for the oil and gas industry, announced its acquisition by Apollo Funds. The all-cash deal values U.S. Silica at an approximate enterprise value of $1.85 billion. Under the terms of the agreement, U.S. Silica stockholders are set to receive $15.50 per share in cash. This offer represents a premium of 18.7% over U.S. Silica’s closing share price on April 25, 2024, and a 33.0% premium over the 90-day volume-weighted average share price up to the same date.

Following the transaction’s close, expected in the third quarter of 2024, U.S. Silica will delist from the New York Stock Exchange and transition to a private entity, continuing to operate under its established name and leadership by CEO Bryan Shinn and the existing executive team. Charles Shaver, Chairman of the U.S. Silica Board, expressed confidence in the deal, noting its potential to deliver substantial cash value to shareholders and leverage Apollo Funds’ strong track record in the minerals and mining sector to support U.S. Silica’s long-term goals.

U.S. Silica, with a 124-year legacy in the industrial silica and minerals industry, stands to benefit significantly from the partnership with Apollo Funds. Bryan Shinn emphasized the opportunities this acquisition creates, enhancing the company’s flexibility and resources to innovate and expand market-leading offerings in their industry segments. Apollo’s Partner, Gareth Turner, also highlighted their commitment to fostering U.S. Silica’s growth and extending its legacy of excellence.

The acquisition, unanimously approved by U.S. Silica’s Board of Directors, is subject to customary closing conditions including shareholder and regulatory approvals. Piper Sandler & Co. serves as financial advisor, and Morrison & Foerster LLP as legal counsel to U.S. Silica. Apollo Funds are advised by Wachtell, Lipton, Rosen & Katz for legal matters, and BNP Paribas Securities Corp and Barclays for financial aspects.

U.S. Silica Holdings, Inc., a member of the Russell 2000, is a global performance materials company with subsidiaries like EP Minerals and SandBox Logistics enhancing its product and service range. The company’s extensive operations include 26 mines and processing facilities across the United States, headquartered in Katy, Texas.

This transaction marks a strategic alignment, potentially reshaping the industrial minerals landscape by combining U.S. Silica’s robust operational framework and Apollo’s financial and strategic prowess. It sets the stage for enhanced product innovation and market expansion, particularly in high-growth sectors such as oil and gas and industrial applications.