Apollo to Take US Silica Private for $1.85B 

U.S. Silica will be acquired by funds managed by affiliates of Apollo Global Management, in an all-cash deal that values the 124-year-old diversified industrial minerals company at approximately $1.85 billion. 

U.S. Silica shareholders will receive $15.50 per share, which represents a 18.7% premium to its closing share price of $13.06 on April 25, the last full trading day prior to the transaction announcement. 

Katy, TX-based U.S. Silica will continue operating under the U.S. Silica name and brand and will continue to be led by CEO Bryan Shinn and the current executive team. 

“By partnering with Apollo Funds, we gain significant resources, deep industry expertise and enhanced flexibility as a private company to pursue the many market opportunities in front of us and invest in innovative capabilities that enable value-added offerings for customers,” said Shinn. 

The transaction is expected to close in the third quarter of 2024. As part of the agreement, Apollo will give U.S. Silica a 45-day window to seek a more attractive offer. 

The deal comes amid consolidation among service companies in the wake of upstream deals that have in the past year created behemoth E&Ps, particularly in the Permian Basin. 

In December 2023, Occidental Petroleum agreed to pay $12 billion in cash and stock for privately held Permian oil and gas producer CrownRock L.P., a joint venture of CrownQuest Operating LLC and Lime Rock Partners, marking the latest large acquisition in the U.S. oil industry. 

Piper Sandler & Co. is acting as a financial advisor to U.S. Silica, and Morrison & Foerster LLP is serving as U.S. Silica’s legal counsel. Wachtell, Lipton, Rosen & Katz is serving as legal counsel and BNP Paribas Securities Corp and Barclays are serving as financial advisors to Apollo Funds.