U.S. Silica Holdings, Inc. Concludes Review of Strategic Alternatives for Industrial & Specialty Products (ISP) Segment

Determines Continued Ownership of ISP Segment Represents Best Path Forward

Review Reflects Improved Macro Environment for Energy Industry, Including Stronger Cash Flow Generation Potential

KATY, Texas, June 13, 2022 /PRNewswire/ -- U.S. Silica Holdings, Inc. (NYSE: SLCA), a diversified industrial minerals company and the leading last-mile logistics provider to the oil and gas industry, today announced that its Board of Directors has concluded its previously announced review of strategic alternatives for its Industrial & Specialty Products ("ISP") segment.

Over the course of the review, which began in October 2021, the Board considered a range of options with a goal to maximize shareholder value, including the potential sale or separation of the ISP segment. As part of the review, the Company, among other actions, contacted and engaged with both strategic industry parties, as well as private equity investors. After extensive evaluation and deliberation, and in consultation with its independent financial and legal advisors, the Board unanimously determined that retaining ownership of the ISP segment represents the best path forward for U.S. Silica and its shareholders. In making its determination, the Board determined that a transaction would fail to provide superior value to shareholders as compared to the Company's standalone strategic and financial outlook, which has improved substantially since the review began. The Board also considered and is pursuing a refinancing of the Company's debt at more attractive terms than previously available.

Charles Shaver, Chairman of the Board, commented, "After an independent and exhaustive review of strategic alternatives, the Board believes continuing to operate the ISP segment and pursuing the Company's business plan is the best path forward to maximize value for all shareholders. The Board is confident in the Company's long-term strategy, growth prospects and ability to generate cash, and will continue to be open to additional opportunities to maximize shareholder value." 

Bryan Shinn, Chief Executive Officer, commented, "Since announcing the strategic review, the macro environment has improved dramatically. North America experienced a substantial rebound in energy prices and demand for our products and services has grown, fueling increased profitability, cash generation and a more robust overall financial profile. We continue to see strength across both business segments and remain focused on the execution of our strategy to drive growth and generate substantial cash flow while creating shareholder value. We also remain committed to improving the Company's financial flexibility and capital structure, which includes pursuing a refinancing from a position of strength and paying down a portion of our debt."

Centerview Partners LLC served as the Company's exclusive financial advisor and Morrison & Foerster LLP as its legal advisor in connection with the strategic review.

About U.S. Silica

U.S. Silica Holdings, Inc. is a global performance materials company and is a member of the Russell 2000. The Company is a leading producer of commercial silica used in the oil and gas industry, and in a wide range of industrial applications. Over its 122-year history, U.S. Silica has developed core competencies in mining, processing, logistics and materials science that enable it to produce and cost-effectively deliver over 600 diversified products to customers across our end markets. U.S. Silica's wholly-owned subsidiaries include EP Minerals and SandBox Logistics™. EP Minerals is an industry leader in the production of products derived from diatomaceous earth, perlite, engineered clays, and non-activated clays. SandBox Logistics™ is a state-of-the-art leader in proppant storage, handling and well-site delivery, dedicated to making proppant logistics cleaner, safer and more efficient. The Company currently operates 24 mines and production facilities and is headquartered in Katy, Texas.

Cautionary Statement Concerning Forward-Looking Statements

This release contains certain forward-looking statements regarding the Company, including statements regarding our conclusion of our review of strategic alternatives for our Industrial & Specialty Products segment and the Company's ability to drive growth, generate substantial cash flow and refinance its debt at more attractive terms than what were previously available. All of these statements are based on management's expectations as well as estimates and assumptions prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and other factors outside of the Company's control that may cause its business, industry, strategy, financing activities or actual results to differ materially. More information on potential factors that could affect the Company's financial results is available in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" section within the Company's most recent annual report on Form 10-K, and in other documents that we have filed with, or furnished to, the U.S. Securities and Exchange Commission. If one or more of these or other risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. The forward-looking statements speak only as of the date hereof, and we disclaim any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Investor Contact
Donald A. Merril
Executive Vice President and Chief Financial Officer
(301) 682-0302
[email protected]

Patricia Gil
Vice President, Investor Relations
(281) 505-6011
[email protected]

SOURCE U.S. Silica Holdings, Inc.