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Industrial minerals company U.S. Silica Holdings (SLCA) has signed a deal to be acquired by funds managed by affiliates of Apollo (APO) for $1.85 billion on April 26.
Under the terms of the agreement, U.S. Silica stockholders will receive $15.50 per share in cash for each share of common stock, representing a premium of 18.68% from the stock’s last close. The merger arbitrage spread on this deal is -1.43%, indicating that the shareholders are expecting a competing bid for the company.
Apollo Funds will be taking the company private after the merger, as the stock will no longer be listed on the New York Stock Exchange upon completion. The deal is expected to close in the third quarter of 2024.
U.S. Silica is a producer of commercial silica used for industrial purposes and has 26 operating mines and processing facilities across the United States.
The deal also includes a 45-day “go-shop” period, expiring on June 10, 2024, which allows U.S. Silica to consider other suitors even after the deal is struck in case it receives a superior offer.
For more in-depth information, please refer to the Deal Metrics page at the following link:
Deal Metrics for the acquisition of U.S. Silica Holdings, Inc (SLCA) by Apollo Funds (APO)
Editor’s Note: Baranjot Kaur contributed to this article.
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