Carbo Ceramics closed a $23 million deal to sell its Millen, Ga., plant to U.S. Silica. The plant makes ceramics proppants for hydraulic fracturing.
Carbo CEO Gary Kolstad commented, “In keeping with our previously discussed transformation strategy, we have completed the sale of the Millen facility. The City of Millen was a great partner to us over the years and we have appreciated being part of their community.
“We are pleased that our cash and cash equivalents and restricted cash balance ended the year at approximately $60 million, excluding proceeds from the sale of Millen, compared to $59 million at the end of the third quarter of 2018.,” Kolstad said. “Maintaining a solid cash position during our transformation is a priority. Including proceeds from the sale of Millen, we are entering 2019 with more than$80 million in cash and approximately $92 million in debt, and expect to use some of this cash to pay down debt during the year. In addition, we are always looking for potential technology additions to enhance our transformation strategy.
“We continue to drive the transformation of our businesses by focusing on growth in technology products and market share in three business sectors: Oilfield, Industrial and Environmental,” Kolstad concluded. “By employing a disciplined approach to our transformation strategy, we believe we are constructing a solid foundation for Carbo that helps minimize the cyclical nature of the oil and gas industry. We remain committed to diversifying our revenue streams and building an enduring company.”