Hi-Crush announces acquisition, amendment

By |  July 26, 2018

Hi-Crush, a provider of proppant and logistics solutions to the North American market, entered into a purchase agreement to acquire FB Industries, a manufacturer and marketer of silo-based frac sand management systems. 

The acquisition purchase totals $60 million. Hi-Crush will pay approximately $45 million in cash and issue approximately $15 million of new common units to the owners of FB Industries. The terms also include the potential for additional future consideration payments based on performance benchmarks through 2021, according to Hi-Crush. 

The transaction is subject to customary closing conditions and is expected to close in the third quarter of this year.

“We are extremely excited to expand our last mile service capabilities with the addition of silo-based systems,” says Robert Rasmus, CEO of Hi-Crush. “With the acquisition of FB Industries, Hi-Crush will be the only provider of both silo and container solutions in the frac sand logistics industry, providing customers the flexibility to choose the solution that best fits their specific well site needs.”

In addition to the acquisition of FB Industries, Hi-Crush also signed an amendment to an existing supply agreement with a supermajor E&P customer operating in the Permian, comprising northern white and in-basin Permian supply and expanded PropStream Services.

Hi-Crush will expand fine mesh production capacity at its Wyeville, Wisconsin, facility by an additional 850,000 tpy to support the northern white component of the amended supply agreement. Following the expansion, the Wyeville facility’s nameplate capacity will increase to 2.7 million tons of annual production, according to the company.

Expansion is expected to be complete in the first quarter of 2019.

“We are proud to advance our relationship with key customers and to execute the next contract-backed phase of our growth,” Rasmus says. “We are committed to supporting the growth of our customers, and this partnership is evidenced by both parties’ commitments to the amended supply agreement.”

This article is tagged with , , , , and posted in News
Avatar photo

About the Author:

Comments are closed