Eagle Materials acquires CRS Proppants

Eagle Materials acquired CRS Proppants for $225 million. With the acquisition, Eagle will now own CRS Proppants’ northern-white frac-sand mine and processing facility in Wisconsin and utilize CRS’ existing long-term sales contracts with targeted customers.

The purchase will be funded by operating cash flow and borrowings under Eagle’s bank credit facility.

According to Eagle, the acquisition will also roughly double its frac-sand production capacity and expand its frac-sand reserves.

“We are building a low delivered-cost frac-sand supply-system that will serve a number of targeted shale plays with the highest-quality northern white sand,” says Steven Rowley, president and CEO of Eagle Materials. “This acquisition will enable us to immediately serve the Permian basin, in particular, with increased production, while creating synergies with our other operations in Texas that are currently serving the Eagle Ford with sand from our Illinois mine.”

The acquisition is expected to close during Eagle’s third fiscal quarter this year.