Playing in the sandbox: U.S Silica to acquire Sandbox Enterprises
U.S Silica Holdings, a leading producer of industrial minerals, including whole grain silica, has announced that it has entered a “definitive agreement” to acquire Sandbox Enterprises.
The company provides innovative logistics solutions and technology for the transportation of proppant used in hydraulic fracturing in the oil and gas industry.
The acquisition is valued around $218.3million and is expected to close later this month once regulatory approvals have been obtained.
''This transformative acquisition enables us to offer customers significantly improved transportation and operating efficiencies, a safer work environment and significant cost savings relative to current proppant delivery systems,'' said Bryan Shinn, U.S. Silica president and chief executive officer.
"Sandbox's proprietary delivery solution is critical to addressing the growing logistical challenges our customers face as E&P operators continue to increase the amount of proppant they use per well.''
U.S. Silica Executive Vice President and Chief Commercial Officer Brad Casper said, ''The acquisition of Sandbox aligns with our strategy of managing the entire supply chain of frac sand from the mine to the well site. Containerized delivery increases transportation efficiency and lowers delivered costs through faster truck turns and reduced jobsite congestion.''
Casper added, "We believe Sandbox has significant runway to grow its existing markets through partnerships with leading service companies, while at the same time making U.S. Silica's logistics network even more efficient with capabilities for mobile transloading and in-basin proppant staging."
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