Unimin Corp., a New Canaan-based subsidiary of the Belgian industrial minerals company SCR-Sibelco, has announced a merger with Fairmount Santrol, a Chesterland, Ohio-based
provider of high-performance sand and sand-based products used by energy companies to enhance the productivity of their oil and gas wells. The merged entity, which has yet to be given a new name, will be listed on the New York Stock Exchange and is forecast to have a revenue of approximately $2 billion.
Unimin Corp. is a producer of low-iron nepheline syenite used in glass, ceramic, paint and plastics. According to its website, the company is both the largest producer of quartz proppants or frac sand, for oil and natural gas stimulation and recovery and the world’s leading producer of the high purity quartz used in the fabrication of integrated circuits, solar photovoltaic cells and high-intensity lighting.
Under the terms of the merger agreement, Fairmount shareholders will receive $170 million in cash and will own 35 percent of the combined company, with Sibelco owning the remaining 65 percent. Sibelco will also retain control of Unimin’s high-purity quartz business, which mainly serves electronics manufacturers in Asia. The new board of directors is expected to be 11 members, six of whom will be recommended by Sibelco and the rest from Fairmount.
Jenniffer Deckard, Fairmont’s president and CEO, will serve as CEO and a director of the new company, while Sibelco has the right to nominate an independent board chairman.
“By combining the complementary strengths of both Unimin and Fairmount Santrol, we will create a premier provider of industrial materials and proppant solutions with benefits and growth opportunities that far surpass what either company could achieve alone,” said Deckard. “Together we will serve our customers more efficiently and effectively with a broader and more diverse product offering, greater technical expertise, improved scale and geographic diversity and an expanded logistics platform.”