Harbinger Capital Partners(R) Funds announced 26 November 2008 the sale of U.S. Silica Co., a wholly-owned producer of industrial minerals. Harbinger, which bought the company about a year ago, receiv…
Harbinger Capital Partners(R) Funds announced 26 November 2008 the sale of U.S. Silica Co., a wholly-owned producer of industrial minerals. Harbinger, which bought the company about a year ago, received net proceeds of more than USD 313 million, including dividends and less fees, from the private sale. “Monetizing U.S. Silica for a gain in this economic climate and in the current financing environment is a testament to the quality of this asset,” said David Maura, vice president and director of investments for Harbinger. “We“ve had a very good track record with our basic chemicals and minerals investments this year, including the profitable sale of General Chemical Industrial Products Inc. to Tata Chemicals Ltd. and of our Oglebay Norton Co. position”. Mr. Maura thanked U.S. Silica chief executive officer John Ulizio and his management team for their stewardship, noting that the company went from generating EBITDA of approximately USD 38 million when it was acquired by Harbinger, to over USD 48 million for the trailing twelve months. “U.S. Silica is a significant market share player generating high free cash flow and maintaining a recession resistant business model,” Mr. Maura said. Harbinger adjusted its plan to roll up the inorganic extractable minerals industry after the successful sale of General Chemical Industrial Products Inc. to Tata Chemicals Ltd. and the topping buyout bid for Oglebay Norton Co. by Carmeuse Group. “We are grateful to have made a good profit on the stand alone U.S. Silica investment,” Mr. Maura said. U.S. Silica, based in Berkeley Springs, West Virginia, was formed in 1987 with the merger of Pennsylvania Glass Sand and Ottawa Silica Company, two of North America“s top silica companies. It is the leading producer of high quality ground and unground silica sand, kaolin clay, aplite and related industrial minerals.