Funds managed by affiliates of Apollo Global Management Inc. have agreed to acquire frack-sand provider US Silica Holdings Inc. in a deal valued at $1.21 billion. This move marks yet another significant acquisition within the shale industry.
Under the terms of the agreement, U.S. Silica investors are set to receive $15.50 in cash for each common stock share. Reflecting an encouraging 18.7% premium to U.S. Silica’s closing price on April 25, the acquisition promises substantial rewards for investors.
U.S. Silica, a key provider of sand designed to prop open small fissures in oil-bearing rock, stands as one of the final major frack-sand miners to withdraw from the public market.
The transaction is an integral part of a larger trend of private investment interest gravitating towards the oil and gas sector. Further developments within this market will be eagerly awaited.
This article is based on a report by Bloomberg Law, which can be accessed in full via this link.