- Case Studies
Industry VerticalManufacturing & Distribution
U.S. Silica Company
U.S. Silica Company (“USS”) was the second largest producer of industrial sand in North America with 22% market share and the #1 or #2 positions in most of its local markets. The company supplied well-diversified, growing end markets including glass, building products, fillers/extenders, foundry, chemicals, oil and gas, matrix materials and ceramics.
Harvest first diligenced USS in October 2006 during an auction process. Primarily due to the poorly understood silicosis liability, USS was not sold. In March 2007, Harvest re-engaged with the sell-side advisor and was able to negotiate a letter of intent quickly due to its prior due diligence of USS. By June 2007, Harvest completed its due diligence. Harvest acquired 95% of the equity at closing.
Harvest Partners Investment
In August 2007, Harvest purchased USS with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a second lien financing. In addition, Harvest arranged equity co-investment capital for the transaction.
- Strong brand and market leader
- Steadily growing industry
- Proven management team
- Harvest anticipated creating value through tuck-in acquisitions, pricing improvement and geographic expansion, as well as macro benefits from increased horizontal drilling/shale development
- Soon after closing, Harvest was approached by an investor that had a larger consolidation strategy in the industry and made Harvest a highly compelling offer.
- Sold to Harbinger Capital Partners in October 2007