EP Minerals to be Acquired by U.S. Silica

RENO, Nev.--()--EP Minerals, LLC, a global leader in industrial minerals and engineered materials and a portfolio company of Golden Gate Capital, today announced that it has entered into a definitive agreement to be acquired by U.S. Silica Holdings, Inc. (NYSE: SLCA), a leading producer of commercial silica used in the oil and gas industry. The transaction represents an enterprise value of $750 million for EP Minerals. EP Minerals’ management team, led by President and CEO Gregg Jones, will continue to lead EP Minerals after the closing of the transaction.

EP Minerals develops, manufactures, and distributes revolutionary products from diatomaceous earth, clay and perlite blends. These engineered materials have greatly expanded the applications and markets for unique minerals, including for use in filtration, additives and absorbents. Established in 1945, EP Minerals has since grown through a series of strategic acquisitions and significant investment in innovating new solutions, markets and applications for high-quality industrial minerals. Today, the Company has become Nevada’s largest exporter of industrial minerals by volume, as well as a global business with offices and manufacturing plants around the world, distributing directly to companies in nearly 100 countries.

Golden Gate Capital partnered with EP Minerals in 2011 to build new and existing markets for the Company, and invest in product development and global expansion, including the addition of the Company’s successful line of specialty mineral products.

Gregg Jones, President and CEO of EP Minerals, said, “We are excited to join the U.S. Silica family and contribute to their diversification strategy. Over the past several years under Golden Gate’s ownership, we have become a global industry leader while staying true to the values we have held since our founding nearly 75 years ago. We look forward to continuing to serve our customers with high-quality products and providing excellent customer service.”

Rajeev Amara, Managing Director at Golden Gate Capital, said, “We deeply appreciate our successful, long-time partnership with Gregg and the EP Minerals management team. During our ownership, the Company has more than doubled in size and become an innovative force in specialty minerals. We are equally excited to sell the business to U.S. Silica, a truly amazing company we have been intimately familiar with over the last decade. We are confident U.S. Silica will be a great home for EP Minerals to continue its growth.”

Dave Keselica, Chairman of the EP Minerals Board, said, “Congratulations to both the EP Minerals and the U.S. Silica teams for creating this winning combination. Under Golden Gate Capital’s ownership, I’ve seen EP Minerals develop into one of the most progressive and innovative companies in the industrial minerals business today. I know that Gregg and his team will be great contributors to U.S. Silica’s growth and success going forward.”

Harris Williams & Co. acted as financial advisor, and Nob Hill Law Group, P.C. and Kirkland & Ellis LLP served as legal advisors to Golden Gate Capital and EP Minerals.

About EP Minerals

EP Minerals, LLC and its affiliate, EP Engineered Clays Corporation, are global producers of engineered materials derived from industrial minerals, including diatomaceous earth (DE), perlite and calcium bentonite, which are used in the clarification and purification of liquids, and as catalysts, absorbents and functional additives, by thousands of companies and consumers in nearly 100 countries. For more information on EP Minerals, visit www.epminerals.com.

For more information on EP Engineered Clays, visit www.epengineeredclays.com.

About Golden Gate Capital

Golden Gate Capital is a San Francisco-based private equity investment firm with over $15 billion of capital under management. The principals of Golden Gate Capital have a long and successful history of investing across a wide range of industries and transaction types, including going-privates, corporate divestitures, and recapitalizations, as well as debt and public equity investments. Notable investments sponsored by Golden Gate Capital include Cole-Parmer, Tronair, ANGUS, Springs Window Fashions and GAL Manufacturing. For more information, visit www.goldengatecap.com.

Contacts

For EP Minerals:
EP Minerals, LLC
Julie Brown, 775-276-2780
Director of Marketing Communications
julie.brown@epminerals.com
or
For Golden Gate Capital:
Sard Verbinnen & Co
David Isaacs / Hayley Fahey
415-618-8750 / 310-201-2040

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