U.S. Silica Holdings Inc of Katy, TX has announced that it is beginning a review of strategic alternatives for its Industrial & Specialty Products (ISP) segment. A range of options are under consideration, including a potential sale or separation of the ISP segment. Last year the ISP segment accounted for half of the company’s revenues at US$431 million.
Bryan Shinn, U.S. Silica’s CEO, said, “Our Board and Management team regularly review strategic opportunities, and with our recent equity valuation tightly correlated to the energy markets, we believe now is the appropriate time to further assess the potential of creating two, focused standalone businesses.
“Both our ISP and Oil & Gas segments are industry leaders, and it is from this position of strength that we believe a separation or sale of ISP has the potential to unlock significant value and maximize returns for all of our stakeholders.
“Our ISP segment has built a market-leading portfolio of products and serves numerous essential, high growth and attractive end markets, including renewable energy, food and beverage, chemical additives, paints and coatings, and building products, among others. The business is well aligned with sustainability initiatives, is positioned to benefit from increased U.S. infrastructure investment and has exposure to environmentally important value chains, including solar panels, wind turbines and green diesel. With its robust new pipeline of commercial products and clear, comprehensive plan, ISP is poised to significantly expand profitability over the next 3-5 years.”
The company notes that there can be no assurance that a sale, separation or any other transaction will take place.
Volume 35, Issue 19