KATY, Texas, Oct. 6, 2021 /PRNewswire/ -- U.S. Silica
Holdings, Inc. (NYSE: SLCA), a diversified global performance
materials company and a leading producer of high value minerals and
specialty products used in a variety of industrial applications and
the leading proppant and last-mile logistics provider to the U.S.
shale industry, today announced that it is commencing a review of
strategic alternatives for its Industrial & Specialty Products
("ISP") segment. A range of options are under consideration,
including a potential sale or separation of the ISP segment.
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"Our Board and management team regularly review strategic
opportunities, and with our recent equity valuation tightly
correlated to the energy markets, we believe now is the appropriate
time to further assess the potential of creating two, focused
standalone businesses," said Bryan
Shinn, Chief Executive Officer. "Both our ISP and O&G
segments are industry leaders, and it is from this position of
strength that we believe a separation or sale of ISP has the
potential to unlock significant value and maximize returns for all
of our stakeholders."
Shinn continued, "Our ISP segment has built a market-leading
portfolio of products and serves numerous essential, high growth
and attractive end markets, including renewable energy, food and
beverage, chemical additives, paints and coatings, and building
products, among others. The business is well aligned with global
sustainability initiatives, is positioned to benefit from increased
U.S. infrastructure investment and has exposure to environmentally
important value chains, including solar panels, wind turbines and
green diesel. With its robust new pipeline of commercial products
and clear, comprehensive plan, ISP is poised to significantly
expand profitability over the next 3-5 years. As we undertake this
review, we will continue to focus on our strategy to prioritize
free cash flow generation and net debt reduction throughout this
process."
No specific timeline has been established for the completion of
the review of strategic alternatives. The Company noted that there
can be no assurance that a sale, separation or any other
transaction will take place. The Company does not intend to
disclose developments with respect to the progress of its
evaluation of any strategic options until such time as the Board of
Directors has approved a transaction or otherwise deems disclosure
required or appropriate.
The Company has retained Centerview Partners LLC as its
exclusive financial advisor and Morrison & Foerster LLP as its
legal advisor in connection with the strategic review.
About U.S. Silica
U.S. Silica Holdings, Inc. is a performance materials company
and is a member of the Russell 2000. The Company is a leading
producer of commercial silica used in the oil and gas industry, and
in a wide range of industrial applications. Over its 121-year
history, U.S. Silica has developed core competencies in mining,
processing, logistics and materials science that enable it to
produce and cost-effectively deliver over 600 diversified products
to customers across our end markets. U.S. Silica's
wholly-owned subsidiaries include EP Minerals and SandBox
Logistics™. EP Minerals is an industry leader in the
production of products derived from diatomaceous earth, perlite,
engineered clays, and non-activated clays. SandBox Logistics™ is a
state-of-the-art leader in proppant storage, handling and well-site
delivery, dedicated to making proppant logistics cleaner, safer and
more efficient. The Company currently operates 24 mines and
production facilities and is headquartered in Katy, Texas.
Cautionary Statement Concerning Forward-Looking
Statements
This release contains certain forward-looking statements
regarding the Company, including statements regarding our review of
strategic alternatives for our Industrial & Specialty Products
segment. All of these statements are based on management's
expectations as well as estimates and assumptions prepared by
management that, although they believe to be reasonable, are
inherently uncertain. These statements involve risks and
uncertainties, including, but not limited to, economic,
competitive, governmental and other factors outside of the
Company's control that may cause its business, industry, strategy,
financing activities or actual results to differ materially, and
there can be no assurance regarding the potential outcome or timing
of our strategic review process. More information on potential
factors that could affect the Company's financial results is
available in the "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" section
within the Company's most recent annual report on Form 10-K, and in
other documents that we have filed with, or furnished to, the U.S.
Securities and Exchange Commission. If one or more of these or
other risks or uncertainties materialize (or the consequences of
such a development changes), or should underlying assumptions prove
incorrect, actual outcomes may vary materially from those reflected
in our forward-looking statements. The forward-looking
statements speak only as of the date hereof, and we disclaim any
intention or obligation to update publicly or revise such
statements, whether as a result of new information, future events
or otherwise.
Investor Contact
Donald A.
Merril
Executive Vice President and Chief Financial Officer
(301) 682-0302
Merril@ussilica.com
Patricia Gil
Vice President, Investor Relations
(281) 505-6011
gil@ussilica.com
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SOURCE U.S. Silica Holdings, Inc.