From Houston Chronicle
Houston-area frac sand company U.S. Silica has closed on a $23 million deal to buy a Georgia plant that was used to make ceramics proppants for the hydraulic fracturing process.
U.S. Silica Holdings Inc. announced on Monday morning that it closed the deal to buy the Carbo Ceramics plant in Millen, Ga.
Headquartered in Katy, U.S. Silica reported that it plans to convert the facility into a manufacturing plant to make high-end products for the company’s industrial and specialties products business.
Traded on the New York Stock Exchange under the symbol SLCA, U.S. Silica reported that the Houston-area frac sand company is already in the initial stages of customer trials and expects to begin full production at the Georgia plant in the second half of this year.
“Adding this new capability will accelerate new product launches, improve product quality and facilitate important product customizations required by our industrial customers,” U.S. Silica President and CEO Bryan Shinn said in a statement.
Carbo Ceramics CEO Gary Kolstad reported that $21 million in proceeds from the plant sale will be used to pay down the company’s debt.
