Silica sand provider U.S. Silica has signed a stock purchase agreement to acquire all of the outstanding shares of regional sand mining company Cadre Services Inc., based in Texas, for $98 million.
U.S. Silica is now set to acquire the shares from Cadre’s single frac sand mine and plant, which produces about 800,000 tons of Hickory sand annually. Cadre’s location in the Permian Basin also allows it to serve its customers on both a contract and a spot basis.
“This accretive acquisition aligns with our strategy to increase market share by expanding our footprint and product offerings in one of the fastest growing basins in the country,” says Bryan Shinn, president and chief executive officer of U.S. Silica. “The addition of the Cadre team and their outstanding operational and logistics capabilities allows us to provide our customers with a high quality, regionally-produced product which effectively meets the demands of many Permian oil and gas wells.”
The deal is expected to close at the end of the month.
