Business
ProFrac Holding Corp. to Acquire Two Companies Expanding its Pressure Pumping Footprint and Sand Mine Portfolio
Completed its Monarch Silica Sand Mine Acquisition in the Eagle Ford Continues to Execute on its Strategic Growth Plan WILLOW PARK, Texas, Dec. 27, 2022
About this update from Profrac Holding Corp.
[{"type":"text","content":"Completed its Monarch Silica Sand Mine Acquisition in the Eagle Ford\nContinues to Execute on its Strategic Growth Plan\nWILLOW PARK, Texas, Dec. 27, 2022 /PRNewswire/ -- ProFrac Holding Corp. (NASDAQ: ACDC) (\"ProFrac\" or the \"Company\") today reported that it has closed its previously-announced acquisition of the Eagle Ford sand mining operations of Monarch Silica, LLC (\"Monarch\"), and announced that it has entered into definitive agreements to acquire two companies that will grow its pressure pumping footprint and sand mine portfolio. \nProFrac continues its \"Acquire, Retire, Replace\" strategy with the acquisition of a high-quality, Rockies-focused pressure pumper.\nThe Company's subsidiary, ProFrac Holdings II, LLC, has entered into a definitive agreement to acquire REV Energy Holdings, LLC (\"REV\"), a privately owned pressure pumping service provider with operations in the Rockies and Eagle Ford. Under the terms of the agreement, ProFrac will acquire REV for $140 million, consisting of $70 million in ProFrac Class B common shares, approximately $39 million in seller-provided financing, and the balance with cash on hand and debt assumption of approximately $5.5 million. The purchase agreement also provides for up to $20 million of earn-out payments in the event REV achieves EBITDA of approximately $90 million in 2023. The transaction is expected to close before the end of January 2023.\nREV operates three premium frac fleets totaling 204,500 hydraulic horsepower that offer significant opportunity for upgrades through the additions of DGB engines and engine idle reduction systems. The acquisition will expand ProFrac's presence in both the Rockies and South Texas and is further demonstration of ProFrac's \"acquire, retire and replace\" strategy.\nLadd Wilks, ProFrac's Chief Executive Officer, added, \"We are pleased to be acquiring REV, a company with a track record for high-quality service as well as safety and efficiency. REV operates three fleets consisting of mostly modern Tier IV conventional pumps that can be converted into next-generation assets through DGB upgrades. We are excited for the future with REV and believe that both our customers and shareholders will benefit from the combination.\"\nProFrac enhances its vertical integration strategy with the acquisition of the leading proppant producer in the Haynesvi...