US Silica acquires Mississippi Sand for $95.4m
Commercial silica producer US Silica Holdings has acquired frac sand mining and logistics company Mississippi Sand for $95.4m.
Silica has applications in the oil and gas industry.
The acquisition comprises a sand mine and plant with a production capacity of 1.2 million tonnes per annum.
In addition, US Silica will have access to a multi-modal distribution network with the flexibility to serve multiple basins, including the Mid-Continent, Marcellus / Utica, Eagle Ford, Fayetteville, Haynesville, Permian and the DJ basins.
The plant is located 40 miles south-east of US Silica's Pacific, Missouri-based mine and plant.
US Silica Holdings president and CEO Bryan Shinn said: "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.''
"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.''
US Silica noted that the plant's production capacity can be increased to 1.6 million tonnes per year with a relatively low capital investment.
Mississippi Sand operates more than 30 million tonnes of frac sand reserves hosted on 650 acres through a lease agreement and has secured contracts for the sale of a majority of the current capacity.
The company’s distribution network comprises five barge terminals and three rail terminals, all with a combined throughput of 2.2 million tonnes per annum.
In addition, the acquisition includes a dry plant located near Seagraves, Texas, with a production capacity of around one million tonnes per year.
US Silica currently operates nine industrial sand production plants, as well as eight oil and gas sand production plants.