Silica Holdings acquires Texas sand plant.
Silica Holdings Inc. announced that it has signed a stock purchase agreement to acquire all of the outstanding shares of Cadre Services Inc., a leading regional sand mining company based in Voca, Texas, for approximately $98 million in cash. Closing is expected by the end of the month.
Cadre operates a single frac sand mine and plant, with recently expanded annual capacity of about 800,000 tpy of Premium Hickory sand. The fully automated, state-of-the-art facility, which became operational in 2011, has more than 65 years of high-quality reserves. Cadre's regional location allows it to service customers in the fast growing Permian Basin on both a con tract and a spot basis, with about 40 percent of revenue derived from customers under take-or-pay contracts.
Bryan Shinn, president and chief executive officer of U.S. Silica, said, "This accretive acquisition aligns with our strategy to increase market share by expanding our footprint and product offerings in one of the fastest growing basins in the country. The addition of the Cadre team and their outstanding operational and logistics capabilities allows us to provide our customers with a high quality, regionally-produced product which effectively meets the demands of many Permian oil and gas wells."
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|Title Annotation:||FRAC SAND INSIDER; Cadre Services Inc|
|Article Type:||Brief article|
|Date:||Aug 1, 2014|
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