U.S. Silica Holdings’ Acquisition of SandBox Logistics Drives Gains

 

U.S. Silica Holdings
Image: ussilica.com

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.

SandBox Logistics Reaps Benefits from Acquisition

Sandbox Logistics
Image: indeed.com

SandBox Logistics, LLC, is a Houston-based company focused on the transportation of proppant, a sand-like material used in the fracking process, from diverse resource-extraction locations. In August 2016, SandBox Logistics received new strategic impetus when SandBox Enterprises, LLC, was acquired by U.S. Silica Holdings, Inc.

The $218 million transaction was lauded for the commercial and operational synergies it created. With mobile transloading available for any rail spur nationwide, the transaction is seen as leading to highly efficient capital use.

The deal was also described by the president and CEO of U.S. Silica as giving his company the capacity to make sand delivery more reliable and safe. The containerized approach is scalable and provides long-term shareholder value through its “last mile” delivery commitment. Cost-effectiveness is ensured through proprietary equipment and processes. With services extending from wellhead to mine, the company now has the potential to transform how fracking transportation is handled.