The American oil and gas service company Atlas Energy Solutions Inc. has entered into a definitive agreement to acquire Hi Crush Inc. assets for the production of proppants in Permian Basin and logistics operations in North America. This is reported in the Atlas press release.
The transaction value is $450 million. The financing of the transaction provides for the payment of an advance of $150 million in cash, $175 million through the issue of shares and $125 million in deferred payments in the form of an Atlas promissory note.
The deal is aimed at bringing together two of the largest innovative companies in the production of proppants and dune sand mining in the Permian Basin region.
The combination of the Dune Express platform developed by Atlas with the OnCore network and Hi-Crush's Pronghorn logistics platform will increase business efficiency to 28 million tons of production capacity.
Goldman Sachs & Co. LLC and Piper Sandler & Co. act as financial advisors Atlas. Moelis & Company LLC and Baker Botts LLP are Hi-Crush consultants.
Proppant is treated sand or artificial ceramic materials designed to maintain open artificial hydraulic fracturing during or after hydraulic fracturing during the extraction of shale oil.
Atlas Energy Solutions Inc. is an oil and gas service company for the production of propellants and the provision of logistics services in the oil and gas industry in the Western Texas and New Mexico are the most active oil and natural gas production regions in North America. The headquarters is located in Austin (state Texas) with production facilities in Kermit and Monahans (Texas).
Hi-Crush Inc. provides proppant manufacturing and logistics services in the North American oil sector. Hi-Crush produces monocrystalline sand, a specialized mineral used as a proppant in the production of oil and natural gas. The company provides American oil and gas operators and service companies with the opportunity to ensure safety and efficiency of work. Clearlake Capital Group L.P. and Whitebox Advisors LLC are the majority shareholders of Hi-Crush Inc. The headquarters is located in Houston (Texas).
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