KATY, Texas - U.S. Silica Holdings, Inc. (NYSE: SLCA), a diversified industrial minerals firm, announced today that its stockholders have approved the company's acquisition by affiliates of investment firm Apollo (NYSE: APO) in an all-cash deal. The approval was secured during a special meeting of U.S. Silica's stockholders.
The transaction, which had been previously made public, received votes from approximately 78% of the outstanding shares, surpassing the requisite majority with over 75% of the shares cast in favor. The merger's completion is contingent on meeting the terms and conditions set forth in the agreement, with the anticipation of finalizing the deal before the end of the current quarter.
U.S. Silica, a company with 124 years of history, is a prominent producer of commercial silica used in the oil and gas industry, among other industrial applications. The company's portfolio includes over 800 diversified products delivered to customers across various end markets.
Its wholly-owned subsidiaries, EP Minerals and SandBox Logistics™, contribute to its industry leadership in diatomaceous earth products and innovative proppant logistics solutions, respectively.
Apollo Global Management (NYSE:APO), Inc., the acquiring entity, is a global alternative asset manager with a focus on yield, hybrid, and equity investing strategies. As of the end of the previous year, Apollo managed approximately $651 billion in assets.
The final voting results from the special meeting will be filed with the U.S. Securities and Exchange Commission in a Current Report on Form 8-K. This merger is subject to customary closing conditions, and there can be no guarantee that it will be completed as planned.
This news article is based on a press release statement from U.S. Silica Holdings, Inc.
In other recent news, Apollo Global Management has been active on various fronts. The firm recently saw its outlook revised upward by Jefferies, which raised Apollo's price target to $129.00 from $117.00, while maintaining a "Hold" rating.
Despite slight decreases in distributable earnings and fee-related earnings estimates for Q2 2024, Apollo's year-over-year growth projections remain positive, with a 15% increase in fee-related earnings and a 12% growth in funds from realized results expected.
Apollo, alongside Kyndryl Holdings, is considering a joint acquisition of DXC Technology (NYSE:DXC), which could value the latter's shares between $22 and $25. Simultaneously, Apollo has been involved in significant financial activities, including pricing a $750 million senior notes offering with a 5.800% interest rate due in 2054, and launching another offering of senior notes, guaranteed by several of its subsidiaries.
In partnership discussions, Apollo is reportedly negotiating a potential $11 billion investment with Intel Corporation (NASDAQ:INTC) for a manufacturing facility in Ireland. Moreover, Apollo and Sony (NYSE:SONY) Pictures Entertainment are in talks to acquire and split Paramount Global for $26 billion. These are among the recent developments involving Apollo Global Management.
InvestingPro Insights
As U.S. Silica Holdings, Inc. transitions into the hands of Apollo (NYSE: APO), stakeholders may find the following InvestingPro Insights particularly relevant to the acquisition and future prospects of the company.
InvestingPro Data indicates a robust financial posture for Apollo, with a substantial market capitalization of $70.33 billion and an attractive P/E Ratio of 13.64, which adjusts to 14.57 when considering the last twelve months as of Q1 2024. These figures underscore Apollo's financial health and potential for delivering shareholder value.
The company has also demonstrated impressive revenue growth, with a 120.25% increase over the last twelve months as of Q1 2024, and a quarterly revenue growth of 32.62% in Q1 2024. Such growth rates are indicative of Apollo's strong performance and may signal continued positive momentum following the acquisition of U.S. Silica.
In terms of shareholder returns, Apollo has a track record of maintaining dividend payments for 14 consecutive years, as highlighted by one of the InvestingPro Tips. This consistency in rewarding shareholders is complemented by a significant one-year price total return of 55.36%, reflecting the company's capacity to generate substantial returns.
Investors looking to delve deeper into Apollo's investment potential can explore additional insights on InvestingPro, where 14 more InvestingPro Tips are available. These tips offer a comprehensive understanding of the company's financials, market position, and future outlook. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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