Eagle Materials To Buy CRS Proppants For $225 Mln - Quick Facts

(RTTNews) - Eagle Materials, Inc. (EXP) has agreed to acquire CRS Proppants LLC and its units, including Great Northern Sand LLC, an established supplier of high-quality northern-white frac-sand to the energy industry.

Subject to adjustments for working capital and other items, the cash purchase price of around $225 million would be funded by operating cash flow and borrowings under Eagle's bank credit facility. Revenues, EBITDA and earnings before income taxes from continuing operations for the nine months through September 30, 2014 for CRS Proppants were $64.7 million, $12.2 million and $8.7 million, respectively.

The transaction is likely to be immediately accretive and synergies of $5 million are expected to be realized within the first 12 months. The acquisition would roughly double Eagle's frac-sand production capacity and expand Eagle's frac-sand reserves, according to the company.