SandBox Logistics is a Houston, Texas-based company that provides hydraulic fracturing clients with innovation-driven last mile delivery services. Acquired by growth-focused U.S. Silica Holdings, Inc., in August 2016, SandBox Logistics was recently featured in a Seeking Alpha article titled “Frac Sand Companies with Integrated Logistics Will Be King in 2017.”
With regional sand demand expected to expand upwards of 70 percent this year, a key investor focus is on U.S. Silica’s multifaceted growth strategy, which began with the acquisition of NBR Sand in July 2016. This regionally focused move centered on East Texas markets spanning Haynesville, Eagle Ford, and Eaglebine.
Seeking Alpha characterized the SandBox Logistics deal as equally impactful, with forecasts pointing to a doubling of market share within the upcoming 12-18 months. The acquisition is described as highlighting the vital role that last-mile logistics play in boosting fracking operation activities and driving industry efficiencies and profitability within a competitive market environment.
U.S. Silica Holdings
Based in Houston, Texas, SandBox Logistics, LLC, provides independent, last-mile delivery services to clients throughout the hydraulic fracturing industry. In August of 2016, SandBox Logistics, LLC, was successfully acquired by U.S. Silica Holdings, Inc., which maintains Russell 2000 membership and is one of the country’s leading commercial silica producers.
The high-profile acquisition was characterized by U.S. Silica CEO and President Bryan Shinn as significantly boosting his company’s logistics capabilities. In particular, the transformative solutions SandBox offers decouple well-site consumption from sand delivery, thus increasing safety and reliability.
The $218 million transaction was also characterized as providing U.S. Silica with scalability advantages, with widespread industry adoption potentially leading to long-term shareholder value. The value of the acquisition was reinforced during a February 2017 conference call in which U.S. Silica Holdings pointed to major revenue and funding increases in 2016, and to expansion plans that call for more than 80 SandBox fleets to be in operation by year’s end.