Covia Closes the Sale of the Winchester and Western Railroad for $105 Million
September 11 2019 - 6:00AM
Covia (NYSE:CVIA), a leading provider of mineral-based and material
solutions for the Industrial and Energy markets, announced that
effective today, it has closed on the sale of the Winchester and
Western Railroad to an affiliate of OmniTRAX, Inc. (“OmniTRAX”).
Gross proceeds are $105 million in cash, subject to certain
post-closing adjustments as set forth in the definitive agreement.
As part of the transaction, OmniTRAX will assume ownership of
approximately 470 railcars.
About CoviaCovia is a leading provider of
mineral-based material solutions for the Industrial and Energy
markets, representing the legacy and combined strengths from the
June 2018 merger of Unimin and Fairmount Santrol. The Company is a
leading provider of diversified mineral solutions to the glass,
ceramics, coatings, foundry, polymers, construction, water
filtration, sports and recreation markets. The Company offers a
broad array of high-quality products, including high-purity silica
sand, nepheline syenite, feldspar, clay, kaolin, resin systems and
coated materials, delivered through its comprehensive distribution
network. Covia offers its Energy customers an unparalleled
selection of proppant solutions, additives, and coated products to
enhance well productivity and to address both surface and down-hole
challenges in all well environments. Covia has built long-standing
relationships with a broad customer base consisting of blue-chip
customers. Underpinning these strengths is an unwavering commitment
to safety and to sustainable development further enhancing the
value that Covia delivers to all of its stakeholders. For more
information, visit CoviaCorp.com.
Caution Concerning Forward-Looking
Statements
This release contains statements which, to the
extent they are not statements of historical or present fact,
constitute forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended, and the
Private Securities Litigation Reform Act of 1995 (“PSLRA”), and
such statements are intended to qualify for the protection of the
safe harbor provided by the PSLRA. The words “anticipate,”
“estimate,” “expect,” “objective,” “goal,” “project,” “intend,”
“plan,” “believe,” “will,” “should,” “may,” “target,” “forecast,”
“guidance,” “outlook” and similar expressions generally identify
forward-looking statements. Similarly, descriptions of the
Company’s objectives, strategies, plans, goals or targets are also
forward-looking statements. Forward-looking statements relate to
the expectations of the Company’s management as to future
occurrences and trends, including statements expressing optimism or
pessimism about future operating results or events and projected
sales, earnings, capital expenditures and business strategy.
Forward-looking statements are based upon a number of assumptions
concerning future conditions that may ultimately prove to be
inaccurate. Forward-looking statements are based upon management’s
then-current views and assumptions regarding future events and
operating performance. Although the Company’s management believes
the expectations expressed in forward-looking statements are based
on reasonable assumptions within the bounds of its knowledge,
forward-looking statements involve risks, uncertainties and other
factors which may materially affect the Company’s business,
financial condition, and results of operations or liquidity.
Forward-looking statements are not guarantees of future
performance and actual results may differ materially from those
discussed in the forward-looking statements as a result of various
factors, including, but not limited to: changes in prevailing
economic conditions, including fluctuations in supply of, demand
for, and pricing of, the Company’s products; potential business
uncertainties relating to the 2018 merger of Unimin and Fairmount
Santrol, including potential disruptions to the Company’s business
and operational relationships, the Company’s ability to achieve
anticipated synergies, and the anticipated costs, timing and
complexity of the Company’s integration efforts; loss of, or
reduction in, business from the Company’s largest customers or
their failure to pay the Company; possible adverse effects of being
leveraged, including interest rate, event of default or refinancing
risks, as well as potentially limiting the Company’s ability to
invest in certain market opportunities; the Company’s ability to
successfully develop and market new products; the Company’s rights
and ability to mine its property and its renewal or receipt of the
required permits and approvals from government authorities and
other third parties; the Company’s ability to implement and realize
efficiencies from capacity expansion plans, and cost reduction
initiatives within its time and budgetary parameters; increasing
costs or a lack of dependability or availability of transportation
services or infrastructure and geographic shifts in demand;
changing legislative and regulatory initiatives relating to the
Company’s business, including environmental, mining, health and
safety, licensing, reclamation and other regulation relating to
hydraulic fracturing (and changes in their enforcement and
interpretation); silica-related health issues and corresponding
litigation; seasonal and severe weather conditions; other operating
risks beyond the Company’s control; the risks discussed in the Risk
Factors section of the Company’s Annual Report on Form 10-K as
filed with the Securities and Exchange Commission (“SEC”) on March
22, 2019; and the other factors discussed from time to time in the
Company’s Annual Reports on Form 10-K, Quarterly Reports on Form
10-Q, Current Reports on Form 8-K and other filings with the SEC.
This release should be read in conjunction with such filings, and
you should consider all of such risks, uncertainties and other
factors carefully in evaluating forward-looking statements.
You are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date thereof. The Company
undertakes no obligation to publicly update forward-looking
statements, whether as a result of new information, future events
or otherwise. You are advised, however, to consult any further
disclosures the Company makes on related subjects in its public
announcements and SEC filing.
Investor contact:Matthew
Schlarb440-214-3284Matthew.Schlarb@coviacorp.com
Source: Covia
Covia (NYSE:CVIA)
Historical Stock Chart
From Jul 2024 to Aug 2024
Covia (NYSE:CVIA)
Historical Stock Chart
From Aug 2023 to Aug 2024