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Covia Holdings LLC, a provider of mineral-based and material solutions for the industrial and energy markets, plans to separate its energy and industrial businesses into separate companies, according to a Jan. 16 press release.
Covia Energy will be a leading pure-play sand company serving the energy industry, providing proppant and logistical solutions to E&Ps and oilfield service companies in major basins across North America.
The company’s industrial business will continue to operate as Covia Solutions, a provider of products including high-purity silica sand, nepheline syenite, feldspar, kaolin and ball clays, cristobalite and coated materials that serve the construction, paints, plastics, architectural and specialty glass and ceramics markets.
Each business will have a stand-alone capital structure, distinct investment thesis, independent management team and scale advantages to deliver solutions for customers.
“Over the past three years, both our energy and industrial businesses have successfully built separate capabilities while executing on a series of growth strategies that have created significant value and enabled these businesses to operate independently,” said Andrew Eich, Covia president and CEO.
“Separating our energy business creates the potential and freedom for Covia Energy to invest and grow through scale opportunities that can optimize cost and value for its customers,” Eich said.
Michael Segura, who joined Covia in 2023 as president of the energy division, will serve as the president and CEO of Covia Energy upon separation.
Segura said the separation will allow Covia Energy to drive scale and value creation for the upstream energy space “while continuing to provide excellent products, service and reliability for our customers.”
The separation of the two companies is expected to be completed in 2024.
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