Hi-Crush Scoops Up Silo-Based Frack Sand Storage Provider FB Industries

Hi-Crush Partners LP (NYSE: HCLP) said July 23 it is on the path to becoming the most integrated, mine-to-wellsite supplier of proppant and logistics services following the acquisition of FB Industries Inc. for about $60 million in cash and stock.

Hi-Crush agreed to pay about $45 million cash and $15 million of new common units to acquire FB Industries, a manufacturer and marketer of silo-based frack sand management systems. The terms also include the potential for additional future consideration payments based on the achievement of established performance benchmarks through 2021.

In addition, Hi-Crush said July 23 it executed a new amendment to the existing supply agreement with an undisclosed supermajor E&P customer operating in the Permian, comprising Northern White and in-basin Permian supply and expanded PropStream services.