SLCA - U.S. Silica To Be Acquired For $15.50 Per Share; Positive For Smaller Peer Smart Sand
2024-04-26 11:27:25 ET
Summary
- U.S. Silica is to be acquired by Apollo Funds for $1.85 billion in cash or $15.50 per share.
- Deals in the "sand space" are rare, but this is the second one in 2024.
- Positive impact is expected for SND and ACDC as a result of the acquisition.
This morning, Apollo Funds reached an agreement to acquire mid-cap sand player U.S. Silica ( SLCA ) in an all cash deal that values the company at $15.50 per share. U.S. Silica, who also reported a solid quarter this morning as noted in the table below, has shelved their quarterly conference call in the wake of the announcement. The deal values U.S. Silica at approximately 5x TEV/Street, 2024 EBITDA. This is a good price for sand or non-name brand oil service at the moment. SLCA is our 11th largest holding, and we have a $12.82 cost, and we plan to sell our shares today. ...
U.S. Silica To Be Acquired For $15.50 Per Share; Positive For Smaller Peer Smart Sand