Fairmount Santrol, Unimin Corp. to merge
Fairmount Santrol will be merging with Unimin Corp., a wholly owned subsidiary of SCR-Sibelco NV. The new company is expected to have 45 million tons of annual sand and mineral processing capacity and 3 million tons of annual coating capacity.
According to Fairmount Santrol and Unimin, the new company will combine the two organizations’ product portfolios and asset footprints to create an industry-leading propane and industrial materials solution provider. The combined company will serve both energy and industrial customers.
In addition, the combined company will operate a comprehensive logistics platform with large-scale terminal networks across North America. The terminal network is comprised of 96 distribution terminals with 18 unit-train capable terminals.
“By combining the complementary strengths of both Unimin and Fairmount Santrol, we will create a premier provider of industrial materials and proppant solutions with benefits and growth opportunities that far surpass what either company could achieve alone,” says Jenniffer Deckard, president and CEO of Fairmount Santrol. “Together we will serve our customers more efficiently and effectively with a broader and more-diverse product offering, greater technical expertise, improved scale and geographic diversity and an expanded logistics platform.
The transaction is expected to generate significant shareholder value, including a $170 million cash payment to Fairmount Santrol shareholders. The combined company is targeting $150 million of identified annual operational synergies, resulting in more than $1 billion in value creation, the companies add.
About the Author: Allison Kral
Allison Kral is the former senior digital media manager for North Coast Media (NCM). She completed her undergraduate degree at Ohio University where she received a Bachelor of Science in magazine journalism from the E.W. Scripps School of Journalism. She works across a number of digital platforms, which include creating e-newsletters, writing articles and posting across social media sites. She also creates content for NCM's Portable Plants magazine, GPS World magazine and Geospatial Solutions. Her understanding of the ever-changing digital media world allows her to quickly grasp what a target audience desires and create content that is appealing and relevant for any client across any platform.Subscribe to Pit & Quarry
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