Austin, TX-based Atlas Energy Solutions Inc. has clinched an agreement valued at $450 million to acquire Hi-Crush Inc., merging two proppant sand operators to create the largest operator in the Permian Basin.

In the agreement, scheduled for completion by the end of March, Atlas would pay $150 million cash, trade $175 million in common shares and pay $125 million in deferred cash payments. Pro forma production capacity is estimated at 28 million tons of proppant sand, with 80% of 2024 capacity already contracted.

Atlas CEO Ben Brigham discussed the “transformational” tie-up on Tuesday during a conference call with analysts. 

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