U.S. Silica approved a sale to Apollo Global Management in a deal that will take the proppant services company private.
The $1.85 billion cash transaction was approved during a special meeting of U.S. Silica stockholders held July 16, the company said after markets closed.
The merger was approved by more than 75% of U.S. Silica’s outstanding shares; approximately 78% of outstanding shares were represented during the stockholder meeting.
The deal is expected to close before the end of the third quarter, Katy, Texas-based U.S. Silica said.
U.S. Silica agreed to the deal with Apollo in late April.
Under the terms of the agreement, U.S. Silica stockholders will receive $15.50 per share in cash for each share of common stock owned as of closing; the purchase price represented a nearly 19% premium over the company’s closing stock price of $13.06 on April 25.
After closing, U.S. Silica’s stock will cease trading on the New York Stock Exchange and the firm will become a private company.
U.S. Silica will continue to be led by CEO Bryan Shinn and its current executive team after closing, and the company will operate under the same brand.
The company produces commercial silica used by the oil and gas industry and other industrial applications.
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