U.S. Silica acquires Missouri frac sand mining company

By |  August 21, 2017

U.S. Silica Holdings Inc. acquired Mississippi Sand LLC, a frac sand mining and logistics company based in St. Louis, for $95.4 million in cash. The transaction closed on Aug. 16.

According to U.S. Silica, an acquired plant in Festus, Missouri, is capable of producing 1.2 million tons annually of mostly fine grade sand. In addition, U.S. Silica says the plant can be expanded to 1.6 million tons of production per year with capital investments.

Mississippi Sand’s distribution network includes five barge terminals and three rail terminals, two of which are unit train capable, with a combined annual throughput of 2.2 million tons, the company says. The acquisition also includes an approximately 1 million tpy dry plant located near Seagraves, Texas, which is currently idled but could be used in the future as part of U.S. Silica’s in-basin strategy in the Permian, U.S. Silica adds.

“We’re very pleased with the addition of this new low-cost facility with high-quality reserves and flexible logistics, which we believe will greatly complement our product offerings from Pacific,” says Bryan Shinn, president and CEO of U.S. Silica.

“Pacific has some of the highest quality sand in our portfolio, one of the reasons why it operated at close to full capacity through the downturn,” he adds. “This acquisition will enable us to nearly double the size of our capacity from the area and take advantage of multiple modes of distribution to better serve our customers and enhance our competitive position in the marketplace.”

Comments are closed