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U.S. Silica (SLCA) Buys Unit of National Coatings Corp.
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U.S. Silica Holdings, Inc. (SLCA - Free Report) , a leading producer of commercial silica, has purchased a unit of National Coatings Corp. that makes and markets cool roof granules. These products are used in industrial roofing systems that offers greater solar reflectance and increased thermal emittance vis-à-vis standard designed roofing products.
Cool roof systems enhance the durability of the roof and also minimize energy usage. U.S. Silica has acquired patent and intellectual rights and supplier and customer relationships for around $18.7 million in a transaction that closed earlier this month.
The acquisition of new industrial roofing capability has allowed U.S. Silica to enter in a new and growing market and expand its offerings under its new product development initiative.
U.S. Silica outperformed the Zacks categorized Mining - Miscellaneous industry over a year, partly owing to its cost reduction and operational efficiency improvement measures. The company’s shares gained around 111.3% over this period, compared with roughly 62% gain recorded by the industry.
U.S. Silica’s healthy balance sheet provides it with ample opportunities for making strategic investments that will ensure its long-term competitive position in the market. The company’s decision to raise capital enhanced its financial flexibility and reinforced its balance sheet.
The company is executing many cost improvement projects throughout its supply chain. Moreover, it remains focused on preserving capital by giving priority to critical maintenance projects and is also boosting its market position.
As part of its investment strategy, U.S. Silica purchased the NBR Sand unit of New Birmingham Inc., a privately-owned industrial minerals and logistics company which allows the company to expand its product offering and capacity in the regional sands market, and enhance customer satisfaction. The company is optimistic about the growth of the regional sand market and is looking to create a strong foothold in the same.
U.S. Silica has also acquired logistics solutions provider, Sandbox Enterprises LLC. This acquisition will allow the company to offer its customers significantly improved transportation and operating efficiencies and meaningful cost savings relative to the existing delivery systems. The acquisition is also expected to deliver earnings accretion of between 20 cents and 30 cents per share in 2017.
U.S. Silica currently carries a Zacks Rank #2 (Buy).
BHP Billiton has an expected long-term growth of 5.6%.
Hi-Crush Partners has an expected long-term growth of 20%.
Sinopec Shanghai has an expected long-term growth of 14.2%.
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U.S. Silica (SLCA) Buys Unit of National Coatings Corp.
U.S. Silica Holdings, Inc. (SLCA - Free Report) , a leading producer of commercial silica, has purchased a unit of National Coatings Corp. that makes and markets cool roof granules. These products are used in industrial roofing systems that offers greater solar reflectance and increased thermal emittance vis-à-vis standard designed roofing products.
Cool roof systems enhance the durability of the roof and also minimize energy usage. U.S. Silica has acquired patent and intellectual rights and supplier and customer relationships for around $18.7 million in a transaction that closed earlier this month.
The acquisition of new industrial roofing capability has allowed U.S. Silica to enter in a new and growing market and expand its offerings under its new product development initiative.
U.S. Silica outperformed the Zacks categorized Mining - Miscellaneous industry over a year, partly owing to its cost reduction and operational efficiency improvement measures. The company’s shares gained around 111.3% over this period, compared with roughly 62% gain recorded by the industry.
U.S. Silica’s healthy balance sheet provides it with ample opportunities for making strategic investments that will ensure its long-term competitive position in the market. The company’s decision to raise capital enhanced its financial flexibility and reinforced its balance sheet.
The company is executing many cost improvement projects throughout its supply chain. Moreover, it remains focused on preserving capital by giving priority to critical maintenance projects and is also boosting its market position.
As part of its investment strategy, U.S. Silica purchased the NBR Sand unit of New Birmingham Inc., a privately-owned industrial minerals and logistics company which allows the company to expand its product offering and capacity in the regional sands market, and enhance customer satisfaction. The company is optimistic about the growth of the regional sand market and is looking to create a strong foothold in the same.
U.S. Silica has also acquired logistics solutions provider, Sandbox Enterprises LLC. This acquisition will allow the company to offer its customers significantly improved transportation and operating efficiencies and meaningful cost savings relative to the existing delivery systems. The acquisition is also expected to deliver earnings accretion of between 20 cents and 30 cents per share in 2017.
U.S. Silica currently carries a Zacks Rank #2 (Buy).
U.S. Silica Holdings, Inc. Price and Consensus
U.S. Silica Holdings, Inc. Price and Consensus | U.S. Silica Holdings, Inc. Quote
Other Stocks to Consider
Other top companies in the basic materials space include BHP Billiton Limited (BHP - Free Report) , Hi-Crush Partners LP and Sinopec Shanghai Petrochemical Company Limited (SHI - Free Report) , all holding a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BHP Billiton has an expected long-term growth of 5.6%.
Hi-Crush Partners has an expected long-term growth of 20%.
Sinopec Shanghai has an expected long-term growth of 14.2%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>