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Emerge Energy Services LP Announces Divestment of Fuels Business in Deal Valued at Approximately $168 Million

August 31, 2016 7:55 PM EDT

Transaction Results in Substantial Debt Reduction and Simplification of Emerge's Operating Platform

Southlake, Texas - August 31, 2016 - Emerge Energy Services LP ("Emerge" or "the Company") (NYSE: EMES) is pleased to announce that it has completed the previously announced sale of Emerge's fuels business (the "Fuels Business") to Sunoco LP ("Sunoco") (NYSE: SUN), a publicly traded master limited partnership engaged in the wholesale distribution and retail sale of motor fuels. The Fuels Business is comprised of Arlington-based Direct Fuels LLC and Birmingham-based Allied Energy Company LLC and engages primarily in the processing of transmix and the distribution of refined fuels.

The aggregate purchase price was $167.7 million, subject to post-closing working capital adjustments.  As stated previously, Emerge applied the proceeds of the sale, net of transaction related expenses and escrow holdbacks, to reduce its outstanding debt.

Following the sale, Emerge is now a pure-play business with all of its assets and operations focused on its Sand segment, which is engaged in the businesses of mining, processing and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells.  

J.P. Morgan Securities LLC acted as exclusive financial advisor to Emerge, and Latham & Watkins LLP acted as legal counsel to Emerge.

About Emerge Energy Services LP

Emerge Energy Services LP (NYSE: EMES) is a growth-oriented limited partnership engaged in the businesses of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells. Emerge Energy operates through its subsidiary Superior Silica Sands LLC.

Forward-Looking Statements

This release contains certain statements that are "forward-looking statements." These statements can be identified by the use of forward-looking terminology including "may," "believe," "will," "expect," "anticipate," or "estimate" and specifically include the anticipated closing of the divestiture of the Fuels Business. These forward-looking statements involve risks and uncertainties, and there can be no assurance that actual results will not differ materially from those expected by management of Emerge Energy Services LP. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Emerge's Annual Report on Form 10-K and other reports filed with the SEC. The risk factors and other factors noted in the reports filed by Emerge with the SEC could cause actual results to differ materially from those contained in any forward-looking statement. Except as required by law, Emerge does not undertake any obligation to update or revise such forward-looking statements to reflect events or circumstances that occur after the date hereof.

PRESS CONTACT

Investor Relations
(817) 865-5830





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Emerge Energy Services LP via Globenewswire



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