U.S. Silica Backs Off Alternative Plan for Industrial & Specialty Products

U.S. Silica Holdings Inc. 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.”

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