A U.S. Silica sand plant. Apollo will purchase publicly traded U.S. Silica Holdings at a time when service companies are responding to rampant E&P consolidation by conducting their own M&A. (Source: Shutterstock.com)
U.S. Silica approved a sale to Apollo Global Management in a deal that will take the proppant services company private.
The $1.85 billion cash transaction was approved during a special meeting of U.S. Silica stockholders held July 16, the company said after markets closed.
The merger was approved by more than 75% of U.S. Silica’s outstanding shares; approximately 78% of outstanding shares were represented during the stockholder meeting.
The deal is expected to close before the end of the third quarter, Katy, Texas-based U.S. Silica said.
U.S. Silica agreed to the deal with Apollo in late April.
Under the terms of the agreement, U.S. Silica stockholders will receive $15.50 per share in cash for each share of common stock owned as of closing; the purchase price represented a nearly 19% premium over the company’s closing stock price of $13.06 on April 25.
After closing, U.S. Silica’s stock will cease trading on the New York Stock Exchange and the firm will become a private company.
U.S. Silica will continue to be led by CEO Bryan Shinn and its current executive team after closing, and the company will operate under the same brand.
The company produces commercial silica used by the oil and gas industry and other industrial applications.
RELATED
Recommended Reading
Wildcatting is Back: The New Lower 48 Oil Plays
2024-12-15 - Operators wanting to grow oil inventory organically are finding promising potential as modern drilling and completion costs have dropped while adding inventory via M&A is increasingly costly.
Hot Permian Pie: Birch’s Scorching New Dean Wells in Dawson County
2024-10-15 - Birch Resources is continuing its big-oil-well streak in the Dean formation in southern Dawson County with two new wells IP’ing up to 2,768 bbl/d.
Encino’s Tim Parker: Plenty of Utica Oil—and Takeaway Too
2024-11-15 - Encino Energy's Tim Parker tells Hart Energy's Nissa Darbonne about the economics of drilling in the company's Utica oil development at the DUG Appalachia Conference and Expo.
Matador’s U-lateral Delaware Tests Outproduce 2-mile Straight Holes
2024-10-30 - Matador Resources' results from eight Loving County, Texas, tests include two 2-mile U-turn laterals, five 2-mile straight laterals and one 1-mile straight lateral, according to state data.
SM, Crescent Testing New Benches in Oily, Stacked Uinta Basin
2024-11-05 - The operators are landing laterals in zones in the estimated 17 stacked benches in addition to the traditional Uteland Butte.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.