Apollo’s Acquisition of US Silica (SLCA) Receives Shareholder Approval

US Silica Holdings, Inc. SLCA announced that its shareholders have approved its acquisition by funds managed by affiliates of Apollo, a leading investment firm. The all-cash transaction was approved at the company’s special shareholder meeting on July 16, 2024. Closing of the merger is subject to conditions set forth in the agreement and is expected to close before the end of the current quarter.

At the Special Meeting, approximately 78% of the company’s outstanding shares were voted on, and more than 75% approved the merger. The company plans to file the final voting results in a current report on Form 8-K with the SEC.

US Silica announced in April 2024 that its shareholders would receive $15.50 in cash per common share upon closing of the transaction. Upon completion of the transaction, the company will go private and be delisted from the New York Stock Exchange. However, US Silica will continue to operate under the same name and branding, led by its current CEO and executive team.

US Silica shares are up 19.3% over the past year, while the industry is down 1.4%.

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SLCA reported first-quarter adjusted earnings of 20 cents per share, down from 64 cents in the year-ago quarter, missing the Zacks Consensus Estimate of 21 cents. The company reported revenues of $325.9 million, down about 26% year over year and below the Zacks Consensus Estimate of $338.5 million.

US Silica Holdings, Inc. Price and Consensus

US Silica Holdings, Inc. Price-Consensus-Chart | US Silica Holdings, Inc. Quotes

Zacks Rank and Key Picks

US Silica currently has a Zacks Rating of #3 (Hold).

Some of the higher-ranking stocks in the basic materials sector include: Carpenter Technology Corporation KRS, Eldorado Gold Corporation EGO and Kinross Gold Corporation KGC. Carpenter Technology and Eldorado Gold have a Zacks Rank #1 (Strong Buy), while Kinross has a Zacks Rank #2. You can see complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CRS earnings this year is $4.35, representing a year-over-year increase of 282%. CRS earnings have surpassed the Zacks Consensus Estimate in three of the last four quarters, and met it once, with an average earnings surprise of 15.1%. The company’s shares are up 111.5% over the past year.

The Zacks Consensus Estimate for EGO’s current year earnings is $1.09, which would represent a year-over-year increase of 91.2%. EGO’s earnings estimates have moved 10% higher over the past 60 days. EGO has beaten the consensus estimate over the past four quarters, with an average earnings surprise of 430.7%. The stock is up 50.7% over the past year.

The Zacks Consensus Estimate for Kinross’s current-year earnings is 52 cents, representing an increase of 18.2% from year-ago levels. KGC has beaten the consensus estimate in the last four quarters, with an average earnings surprise of 46%. The stock is up nearly 79.9% over the past year.

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