December 14, 2017
On Tuesday, Dec. 12, 2017, Fairmount Santrol Holdings Inc. announced plans to sell itself to Unimin Corp. in a cash-and-stock deal that is expected to close by mid 2018. The sale will combine the two companies, creating a company with approximately $2 billion in annual revenue from the production of more than 45 million tons of frac sand annually.
Fairmount Chief Executive Jenniffer Deckard is expected to be the CEO of the new company. “This is a compelling transaction for our shareholders and for our many other stakeholders, including our customers, employees and communities,” Deckard said in a press release. “By combining the complementary strengths of both Unimin and Fairmount Santrol, we will create a premier provider of industrial materials and proppant solutions with benefits and growth opportunities that far surpass what either company could achieve alone. Together we will serve our customers more efficiently and effectively with a broader and more diverse product offering, greater technical expertise, improved scale and geographic diversity and an expanded logistics platform. We have long respected the Unimin organization and believe our shared cultures of sustainability and long-term value creation will enable us to realize the benefits of this merger.”
Unimin President and CEO Campbell Jones said, “We are excited to join forces with Fairmount, as we believe this combination is an ideal fit for our value-driven orientation and long-term vision of strength through diversity of products and end markets. Fairmount is an excellent partner for Unimin and shares our strategy of providing superior and innovative product solutions for the growing energy and industrial segments. Together, our combined network of flagship plants, terminals, and rail access will deliver greater capacity and more cost-competitive supply to meet our customers’ needs.”
After the deal closes, Fairmount shareholders will receive $170 million in cash and own approximately 35 percent of the new company. Unimin, a division of SCR-Sibelco NV, will own the rest. Fairmount shares rose as much as 6.9 percent after the deal was disclosed before finishing up 1.4 percent.
Barclays Bank and BNP Paribas provided Unimin with financing for the deal.