U.S. Silica Holdings Inc. (NYSE: SLCA) has agreed to acquire the NBR Sand unit of privately-owned New Birmingham Inc. for approximately $210 million. Funding to acquire the regional sand producer will come from a combination of cash on hand (57%) and restricted stock (43%).
NBR Sand, located in Tyler, Texas, operates a single sand mine and plant that has the capacity to produce just over two million tons of fine-grade frac sand per year. The east Texas facility currently sells its products FOB the plant to customers that are primarily drilling and completing wells in the nearby basins. Once completely integrated into U.S. Silica, the company anticipates the acquisition is expected to generate EPS accretion of $0.20 to $0.30 in 2017.
The NBR Sand unit produces 40/70 Mesh and 100 Mesh Silica Sand. The facility is on approximately 1,400 acres near Interstate 20. It includes 12 storage silos with capacity of more than 10,000 tons and five load-out lanes. Closing, expected in August 2016, is subject to customary regulatory and other approvals.