U.S. Silica Holdings Inc. (NYSE: SLCA) moved in on the Permian Basin July 16, signing a purchase agreement for sand supplier Cadre Services Inc.
U.S. Silica will pay $98 million for Cadre, a major supplier of brown sand in a market where proppant demand is surging. Deferred taxes of $14 million will reduce total consideration to $84 million, Cadre said.
Brown sand is primarily located in Texas, and offers lesser quality than U.S. Silica's Northern White sand, but is attractive due to its much lower selling point.
“In the Permian ...