Latest News
Smart Sand to Acquire Quickthree Solutions for USD 42.75m
Wednesday 16 May 2018

16 May 2018 - Texas, US-based frac sand producer Smart Sand, Inc. (NASDAQ: SND) has entered into a definitive agreement to acquire substantially all of the assets of Canada-based Quickthree Solutions, Inc., a manufacturer of portable vertical frac sand storage solutions at the wellsite.
The transaction provides for an aggregate purchase price of up to USD 42.75m consisting of USD 30m payable at closing and up to USD 12.75m in potential earnout payments as systems are built and made available for sale or lease over a three-year period.
The transaction will be financed through a combination of cash on hand, advances under the company's credit facility and, at the option of the company, the issuance of 728,004 shares of Smart Sand common stock valued at USD 5m.
Closing of the transaction is expected to occur by 31 May 2018, and is conditioned upon satisfaction of standard and customary closing conditions.
Smart Sand will acquire Quickthree's current production facilities and intellectual property.
Smart Sand said this acquisition puts the company one step closer to becoming an integrated, full service provider of frac sand and logistics support to deliver sand from the mine to the wellhead.
Upon completion of this acquisition, the company will have the technology, production capacity, and management team to compete in the last mile market.
Smart Sand is a pure-play, low-cost producer of high-quality Northern White raw frac sand. The company sells products primarily to oil and natural gas exploration and production companies and oilfield service companies.
Smart Sand owns and operates a raw frac sand mine and processing facility near Oakdale, Wisconsin, and currently has approximately 321m tons of proven recoverable reserves and 5.5m tons of annual processing capacity.
Simmons and Company International, Energy Specialists of Piper Jaffray, served as exclusive financial advisor to Smart Sand on the transaction.
Date Published: 16/05/2018
Target: Quickthree Solutions
Country: Canada
Deal Size: 42.7m (USD)
Sector: Petroleum/Natural Gas/Coal
Type: Corporate acquisition
Financing: Cash and Stock
Status: Agreed
Buyer: Smart Sand