Smart Sand, Inc. Completes Acquisition of Eagle Materials Inc. Oil and Gas Proppants Segment
September 18 2020 - 4:30PM
Smart Sand, Inc. (NASDAQ: SND), a fully integrated frac sand supply
and services company, announced today that is has completed the
acquisition of the Oil and Gas Proppants Segment of Eagle Materials
Inc. (the “Segment”) The Segment’s primary assets include frac sand
mines and related processing facilities in Utica, Illinois and New
Auburn, Wisconsin, with approximately 3.5 million tons of annual
processing capacity, of which approximately 1.6 million tons has
access to the BNSF rail line.
Charles Young, Smart Sand’s Chief Executive Officer stated, “We
are excited about this consolidation opportunity. 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. We
believe this acquisition adds valuable assets to our purpose-built
portfolio and by financing this transaction with equity, we remain
focused on maintaining low leverage levels.”
“With this acquisition we will be able to expand our footprint
into new basins, gain access to new and enhanced logistics options,
broaden our customer base and complement our mine to wellsite
supply and logistics capabilities. These assets complement our
existing business and we are confident we will be able to expand
our efficient and low-cost operating model as we continue to
provide the highest-quality and most reliable supply of frac sand
available on the market today.”
The acquisition was completed on September 18, 2020 for
aggregate consideration of $2 million, consisting of 1,503,759
shares of newly-issued Smart Sand common stock. Eagle Materials
Inc. has agreed to provide initial liquidity support for the
Segment to Smart Sand pursuant to one or more loans in an aggregate
amount of up to $5 million, which may be issued during the first
twelve months from the closing date of the acquisition. If funded
and not repaid on or before the twelve-month anniversary of the
closing date, such loans will mature on September 18, 2024 and will
be amortized over the 36 months following such anniversary. As of
today, September 18, 2020, Smart Sand has total cash on hand of
$10.8 million and no borrowings outstanding on its Credit Facility
or under the liquidity support agreement.
About Smart Sand:
Smart Sand is a fully integrated frac sand
supply and services company, offering complete mine to wellsite
proppant supply and logistics solutions to its customers. The
Company produces low-cost, high quality Northern White frac sand
and offers proppant logistics and wellsite storage solutions to
customers through its in-basin transloading terminal and
SmartSystems™ wellsite proppant storage capabilities. The Company
provides products and services primarily to oil and natural gas
exploration and production companies and oilfield service
companies. For more information, please visit
www.smartsand.com.
Contact:
Josh JaynePhone: (281) 231-2660Email: jjayne@smartsand.com
Lee BeckelmanPhone: (281) 231-2660E-mail:
lbeckelman@smartsand.com
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