Emerge Energy Services LP Announces Divestment of Fuels Business in Deal Valued at Approximately $168 Million
August 31 2016 - 7:54PM
Transaction Results in
Substantial Debt Reduction and Simplification of Emerge's Operating
Platform
Southlake, Texas - August 31,
2016 - Emerge Energy Services LP ("Emerge" or "the Company") (NYSE:
EMES) is pleased to announce that it has completed the previously
announced sale of Emerge's fuels business (the "Fuels Business") to
Sunoco LP ("Sunoco") (NYSE: SUN), a publicly traded master limited
partnership engaged in the wholesale distribution and retail sale
of motor fuels. The Fuels Business is comprised of Arlington-based
Direct Fuels LLC and Birmingham-based Allied Energy Company LLC and
engages primarily in the processing of transmix and the
distribution of refined fuels.
The aggregate purchase price was $167.7 million,
subject to post-closing working capital adjustments. As
stated previously, Emerge applied the proceeds of the sale, net of
transaction related expenses and escrow holdbacks, to reduce its
outstanding debt.
Following the sale, Emerge is now a pure-play
business with all of its assets and operations focused on its Sand
segment, which is engaged in the businesses of mining, processing
and distributing silica sand, a key input for the hydraulic
fracturing of oil and natural gas wells.
J.P. Morgan Securities LLC acted as exclusive
financial advisor to Emerge, and Latham & Watkins LLP acted as
legal counsel to Emerge.
About Emerge Energy Services
LP
Emerge Energy Services LP (NYSE: EMES) is a
growth-oriented limited partnership engaged in the businesses of
mining, producing, and distributing silica sand, a key input for
the hydraulic fracturing of oil and natural gas wells. Emerge
Energy operates through its subsidiary Superior Silica Sands
LLC.
Forward-Looking
Statements
This release contains certain statements that are
"forward-looking statements." These statements can be identified by
the use of forward-looking terminology including "may," "believe,"
"will," "expect," "anticipate," or "estimate" and specifically
include the anticipated closing of the divestiture of the Fuels
Business. These forward-looking statements involve risks and
uncertainties, and there can be no assurance that actual results
will not differ materially from those expected by management of
Emerge Energy Services LP. When considering these forward-looking
statements, you should keep in mind the risk factors and other
cautionary statements in Emerge's Annual Report on Form 10-K and
other reports filed with the SEC. The risk factors and other
factors noted in the reports filed by Emerge with the SEC could
cause actual results to differ materially from those contained in
any forward-looking statement. Except as required by law, Emerge
does not undertake any obligation to update or revise such
forward-looking statements to reflect events or circumstances that
occur after the date hereof.
PRESS CONTACT
Investor Relations
(817) 865-5830
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Emerge Energy Services LP via Globenewswire
EMERGE ENERGY SERVICES LP (NYSE:EMES)
Historical Stock Chart
From May 2024 to Jun 2024
EMERGE ENERGY SERVICES LP (NYSE:EMES)
Historical Stock Chart
From Jun 2023 to Jun 2024