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

 

U.S. Silica Holdings pic

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.

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