Smart Sand acquires Eagle Materials’ oil, gas proppants segment

Smart Sand, a frac sand supply and services company, acquired Eagle Materials‘ oil and gas proppants segment.

The acquisition was completed for aggregate consideration of $2 million.

According to Smart Sand, the segment’s primary assets include frac sand mines and related processing facilities in Utica, Illinois, and New Auburn, Wisconsin. The segment also includes about 3.5 million tons of annual processing capacity, Smart Sand says, of which 1.6 million tons has access to the BNSF rail line.

“We are excited about this consolidation opportunity,” says Charles Young, CEO of Smart Sand. “This acquisition provides direct access to an additional Class I rail line, which allows us greater and more sustainable logistics options to continue to broaden our mine to wellsite capabilities for our customers. We believe these additional mining and logistics resources help secure Smart Sand’s ability to be the preferred provider of Northern White frac sand in the proppants market.

“With this new acquisition, we will be able to expand our footprint into new basins, gain access to new and enhanced logistics options, broaden our customers base and complement our mine to wellsite supply and logistics capabilities,” Young adds.