Unimin, Fairmount Santrol merge to create mega-proppant provider

By Luke Geiver | December 15, 2017

The merger between Unimin Corp. and Fairmount Santrol has created the largest proppant and sand supplier in the U.S. After the board of directors for each entity agreed to merge in a tax-free, cash and stock transaction, the new company will have more than 45 million tons of annual production capacity.

Matthew LeBaron, chairman of the Fairmount Santrol board said the merger comes at an opportune time in the industry. Through its combined network of production sites, transloading or storage locations, the new entity will have a presence in every major U.S. shale oil and gas play.

Unimin counts terminal expansions or production facilities in the Utica and Permian plays among its main growth areas. Fairmount has a diverse group of unique proppant offerings that many of the largest pressure pumpers in the U.S. currently utilize.

In the Permian, the combined company believes it can “blanket” the area. There are currently two plants operating in the region with another expected to be complete in Q2 2018. Another property has been identified for future expansion, according to Unimin.

Jenniffer Deckard, president and CEO of Fairmount Santrol, will take on the same role at the new company. According to Deckard, proppant and frack sand customers are requiring more from suppliers in both scale and efficiencies and the merger will help the single company better serve the industry. In the Permian, demand is rapidly growing, she said.