Smart Sand has acquired frac sand mines and related processing facilities from Eagle Materials in Utica, Illinois and New Auburn, Wisconsin.
Smart sand says the facilities process approximately 3.5 million tonnes annually, of which around 1.6 million tonnes has access to the BNSF rail line.
Charles Young, Smart Sand's CEO, says: “This acquisition provides direct access to an additional Class I rail line which allows us greater and more sustainable logistics options to continue to broaden our mine to wellsite capabilities for our customers. We believe these additional mining and logistics resources help secure Smart Sand’s ability to be the preferred provider of Northern White frac sand in the proppants market. We believe this acquisition adds valuable assets to our purpose-built portfolio and by financing this transaction with equity, we remain focused on maintaining low leverage levels.”
“With this acquisition we will be able to expand our footprint into new basins, gain access to new and enhanced logistics options, broaden our customer base and complement our mine to wellsite supply and logistics capabilities,” Young continues. “These assets complement our existing business and we are confident we will be able to expand our efficient and low-cost operating model as we continue to provide the highest-quality and most reliable supply of frac sand available on the market today.”
The acquisition was completed on 18 September for aggregate consideration of $2 million, consisting of 1,503,759 shares of newly-issued Smart Sand common stock.
