Gordon Brothers Group and an affiliate of Hilco Global have jointly acquired the Canadian operations of Preferred Sands, a U.S. provider of sand to the hydraulic fracturing industry. The acquired assets include Preferred Sands of Canada‘s Hanson Lake facility in Saskatoon. The company specializes in producing premium silica sand, resin-coated proppants and industrial sand, as well as environmentally-sensitive varieties. The value of the assets is said to be about $30 million at cost. U.S. private equity firm Kohlberg Kravis Roberts & Co agreed to make an investment in the Radnor, Pennsylvania-based Preferred Sands in 2014.
Gordon Brothers Group and Hilco Industrial Acquire Mining Assets of Preferred Sands in Canada
January 29, 2015
Gordon Brothers Group and Hilco Industrial, a unit of Hilco Global, announced today that they have acquired the assets of Preferred Sands Canada’s Hanson Lake facility in Saskatoon, Canada in a joint venture. Preferred Sands Canada is a top manufacturer and provider of sand for the hydraulic fracturing industry in the U.S., specializing in premium silica sand, resin-coated proppants, and high quality industrial sand, as well as environmentally-sensitive varieties. Preferred Sands’ mines have a production capacity of over 9 billion pounds of sand annually and it distributes to all major basins in the U.S. and Canada.
The company recently made the strategic decision to exit its Canadian business, which resulted in the acquisition of the assets by the joint venture. The portfolio of assets consist of approximately $30 million at cost and includes over 300 pieces of earth moving equipment, temporary housing and storage structures, silos, screening and processing equipment, construction equipment, and conveyors.
“We are pleased to be able to provide an exit to Preferred Sands from its Canadian operations so it can pursue its go-forward strategy,” stated Jim Lightburn, Managing Director of the Commercial & Industrial Division of Gordon Brothers Group.
Gordon Brothers Group has valued and monetized billions of dollars of energy and industrial assets worldwide. In 2014, Gordon Brothers appraised over $3 billion of energy assets and also undertook the largest hydraulic fracturing disposition project of its kind for Green Field Energy Services, involving a portfolio of equipment valued at more than $250 million.
Hilco Industrial has valued and monetized billions of dollars of industrial assets and is currently working with the world’s leading energy and global geophysical companies who service the oil and gas industries.
While the Preferred Sands’ assets have served sand mining applications for the oil & gas industry, they have adjacent uses in many other industries, including general mining, construction and infrastructure development.
About Preferred Sands
Preferred Sands, headquartered in Radnor, PA, is one of North America’s largest manufacturers and providers of frac sand for oil and natural gas companies in the hydraulic fracturing industry. Launched in 2007 Preferred Sands is the market’s only commercial manufacturer with an available green technology in resin-coated sand. The company’s innovative RCS product line has been recognized by the Oil & Gas Awards as the “Environmental Initiative of the Year” for 2013. With this innovative product development and reclamation projects, the company is not only committed to the protection of the environment but also the health and safety of the communities it serves. Preferred Sands has been named to Inc. 500’s prestigious annual list of “Fastest Growing Private Companies in America” (2013) as well as one of Pennsylvania’s “Best Places to Work.”
Source: Gordon Brothers Group
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