Determines Continued Ownership of ISP Segment
Represents Best Path Forward
Review Reflects Improved Macro Environment for
Energy Industry, Including Stronger Cash Flow Generation
Potential
KATY,
Texas, June 13, 2022 /PRNewswire/ -- U.S. Silica
Holdings, Inc. (NYSE: SLCA), a diversified industrial minerals
company and the leading last-mile logistics provider to the oil and
gas industry, today announced that its Board of Directors has
concluded its previously announced review of strategic alternatives
for its Industrial & Specialty Products ("ISP") segment.
Over the course of the review, which began in October 2021, the Board considered a range of
options with a goal to maximize shareholder value, including the
potential sale or separation of the ISP segment. As part of the
review, the Company, among other actions, contacted and engaged
with both strategic industry parties, as well as private equity
investors. After extensive evaluation and deliberation, and in
consultation with its independent financial and legal advisors, the
Board unanimously determined that retaining ownership of the ISP
segment represents the best path forward for U.S. Silica and its
shareholders. In making its determination, the Board determined
that a transaction would fail to provide superior value to
shareholders as compared to the Company's standalone strategic and
financial outlook, which has improved substantially since the
review began. The Board also considered and is pursuing a
refinancing of the Company's debt at more attractive terms than
previously available.
Charles Shaver, Chairman of the
Board, commented, "After an independent and exhaustive review of
strategic alternatives, the Board believes continuing to operate
the ISP segment and pursuing the Company's business plan is the
best path forward to maximize value for all shareholders. The Board
is confident in the Company's long-term strategy, growth prospects
and ability to generate cash, and will continue to be open to
additional opportunities to maximize shareholder value."
Bryan Shinn, Chief Executive
Officer, commented, "Since announcing the strategic review, the
macro environment has improved dramatically. North America experienced a substantial
rebound in energy prices and demand for our products and services
has grown, fueling increased profitability, cash generation and a
more robust overall financial profile. We continue to see strength
across both business segments and remain focused on the execution
of our strategy to drive growth and generate substantial cash flow
while creating shareholder value. We also remain committed to
improving the Company's financial flexibility and capital
structure, which includes pursuing a refinancing from a position of
strength and paying down a portion of our debt."
Centerview Partners LLC served as the Company's 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 global 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
122-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
conclusion of our review of strategic alternatives for our
Industrial & Specialty Products segment and the Company's
ability to drive growth, generate substantial cash flow and
refinance its debt at more attractive terms than what were
previously available. 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. 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.