Determines Continued Ownership of ISP Section Represents Finest Route Ahead
Evaluate Reflects Enhanced Macro Atmosphere for Electricity Field, Such as Stronger Dollars Flow Era Probable
KATY, Texas, June 13, 2022 /PRNewswire/ — U.S. Silica Holdings, Inc. (NYSE: SLCA), a diversified industrial minerals enterprise and the top final-mile logistics supplier to the oil and gas business, currently declared that its Board of Directors has concluded its previously declared evaluation of strategic possibilities for its Industrial & Specialty Products and solutions (“ISP”) section.
Around the training course of the evaluation, which began in Oct 2021, the Board deemed a array of alternatives with a purpose to increase shareholder price, which includes the probable sale or separation of the ISP section. As section of the evaluate, the Enterprise, among the other actions, contacted and engaged with both of those strategic marketplace events, as very well as private fairness traders. Just after in depth evaluation and deliberation, and in session with its unbiased money and authorized advisors, the Board unanimously determined that retaining ownership of the ISP section represents the finest path ahead for U.S. Silica and its shareholders. In building its determination, the Board identified that a transaction would are unsuccessful to offer top-quality price to shareholders as in comparison to the Firm’s standalone strategic and economical outlook, which has improved substantially because the review started. The Board also regarded as and is pursuing a refinancing of the Company’s credit card debt at a lot more eye-catching terms than previously accessible.
Charles Shaver, Chairman of the Board, commented, “Right after an unbiased and exhaustive evaluate of strategic solutions, the Board believes continuing to work the ISP phase and pursuing the Company’s company strategy is the very best path ahead to optimize price for all shareholders. The Board is assured in the Firm’s extensive-phrase approach, advancement potential clients and means to create dollars, and will continue on to be open to more options to improve shareholder value.”
Bryan Shinn, Chief Govt Officer, commented, “Since announcing the strategic evaluation, the macro ecosystem has enhanced radically. North The united states seasoned a sizeable rebound in strength charges and demand for our goods and products and services has developed, fueling enhanced profitability, income era and a extra strong general economical profile. We keep on to see strength across both equally business enterprise segments and remain targeted on the execution of our method to generate expansion and produce substantial money movement although developing shareholder value. We also keep on being committed to bettering the Firm’s economic overall flexibility and funds framework, which features pursuing a refinancing from a place of strength and having to pay down a part of our financial debt.”
Centerview Companions LLC served as the Firm’s exceptional money advisor and Morrison & Foerster LLP as its lawful advisor in link with the strategic critique.
About U.S. Silica
U.S. Silica Holdings, Inc. is a international performance components business and is a member of the Russell 2000. The Firm is a leading producer of industrial silica utilized in the oil and gasoline field, and in a wide variety of industrial applications. Around its 122-year history, U.S. Silica has developed main competencies in mining, processing, logistics and materials science that help it to develop and expense-properly supply around 600 diversified items to buyers across our stop marketplaces. U.S. Silica’s wholly-owned subsidiaries consist of EP Minerals and SandBox Logistics™. EP Minerals is an sector leader in the manufacturing of merchandise 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 effectively-website shipping and delivery, committed to creating proppant logistics cleaner, safer and additional effective. The Business at present operates 24 mines and manufacturing services and is headquartered in Katy, Texas.
Cautionary Assertion Regarding Forward-Hunting Statements
This launch has selected ahead-on the lookout statements about the Firm, together with statements pertaining to our summary of our assessment of strategic possibilities for our Industrial & Specialty Merchandise segment and the Company’s capability to travel growth, crank out sizeable hard cash circulation and refinance its credit card debt at a lot more attractive phrases than what had been beforehand obtainable. All of these statements are based on management’s expectations as very well as estimates and assumptions well prepared by administration that, although they consider to be fair, are inherently uncertain. These statements contain hazards and uncertainties, which includes, but not restricted to, economic, aggressive, governmental and other components outside the house of the Firm’s command that might lead to its company, business, approach, funding actions or true results to differ materially. More details on opportunity components that could have an effect on the Company’s monetary effects is out there in the “Chance Variables” and “Management’s Dialogue and Investigation of Money Situation and Effects of Operations” segment within just the Company’s most the latest yearly report on Kind 10-K, and in other files that we have filed with, or furnished to, the U.S. Securities and Exchange Commission. If one particular or additional of these or other threats or uncertainties materialize (or the effects of these a advancement alterations), or need to underlying assumptions show incorrect, actual results may well range materially from these reflected in our forward-wanting statements. The ahead-hunting statements discuss only as of the date hereof, and we disclaim any intention or obligation to update publicly or revise such statements, irrespective of whether as a end result of new information, long run situations or normally.
Donald A. Merril
Executive Vice President and Chief Monetary Officer
Vice President, Investor Relations
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Source U.S. Silica Holdings, Inc.