Hi-Crush Partners LP (ticker: HCLP) announced it will acquire privately held FB Industries Inc., a manufacturer and marketer of silo-based frac sand management systems. Total initial consideration is approximately $60 million, the company said in a news release. The transaction is expected to close in the third quarter of 2018.
The company also said it had signed an amendment to an existing sand supply and PropStream services agreement with an oil and gas company which will support an 850,000-ton per year expansion of the Wyeville facility for Northern White sand. Hi-Crush said the order will also support a second 3.0-million-tons-per-year Kermit facility for in-basin Permian sand supply.
Hi-Crush announced it will offer $450 million aggregate principal amount of its senior unsecured notes due 2026 in a private placement.
Hi-Crush CFO Laura C. Fulton said the company expects demand for frac sand to grow to more than 110 million tons in 2018.
Manitoba-based FB Industries manufactures sand silos, conveyors and transloaders used to provide frac sand storage and logistic services.
