U.S. Silica to acquire frac sand producer

By |  July 21, 2016

us-silica-logoU.S. Silica Holdings Inc. agreed to purchase NBR Sand, a unit of New Birmingham Inc., for $210 million. The transaction is expected to close this August.

NBR Sand, which is located in Tyler, Texas, operates a single sand mine and plant that has the capacity to produce slightly more than 2 million tons of fine-grade frac sand per year. The east Texas facility currently sells its products to customers who are primarily drilling and completing wells in the nearby basins.

NBR Sand produces 40/70 mesh and 100 mesh silica sand. The NBR facility is positioned on about 1,400 acres that include 12 storage silos with a capacity of more than 10,000 tons and five load-out lanes. The property has more than 20 years of reserves, according to U.S. Silica.

“This accretive acquisition adds to our capacity and product offering for the growing regional sands market, increasing our ability to effectively satisfy our customers’ needs,” says Bryan Shinn, president and CEO of U.S. Silica. “We expect to unlock the full potential of this excellent mine by utilizing our strong customer relationships and powerful distribution network. We believe demand for regional sands will continue to grow as a cost-effective proppant option for many completions, and this is another important step to position U.S. Silica as a leader in the regional sand market.”

U.S. Silica currently operates nine industrial sand production plants and eight oil and gas sand production plants. The company is headquartered in Frederick, Md., and has offices in Chicago and Houston.

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About the Author:

Kevin Yanik is editor-in-chief of Pit & Quarry. He can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

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