Independence, Ohio, January 16, 2024 – Covia Holdings LLC, a leading provider of mineral-based and material solutions for the industrial and energy markets, today announced plans to separate its Energy and Industrial businesses into separate companies. The decision enables both companies to pursue separate growth strategies that will maximize their respective values in the future.
The company’s industrial business will continue to operate as Covia Solutions and provide customer-centric, innovation-driven solutions through a diverse set of high-quality products, including high-purity silica sand, nepheline syenite, feldspar, kaolin and ball clays, cristobalite, and coated materials, that serve the construction, paints, plastics, architectural and specialty glass, and ceramics markets. Covia Energy will be a leading pure-play sand company serving the energy industry, providing proppant and logistical solutions to E&Ps and Oilfield Service companies in major basins across North America.
Each business will have a clear focus, a stand-alone capital structure, a distinct and compelling investment thesis, independent management team, and scale advantages to deliver superior solutions for customers.
“Over the past three years, both our energy and industrial businesses have successfully built separate capabilities while executing on a series of growth strategies that have created significant value and enabled these businesses to operate independently. As we look forward, we see a bright future for both businesses. Separating our energy business creates the potential and freedom for Covia Energy to invest and grow through scale opportunities that can optimize cost and value for its customers,” said Andrew Eich, President and Chief Executive Officer.
Michael Segura, who joined Covia in 2023 as President of the Energy Division, will serve as the President and CEO of Covia Energy upon separation.
“We’re excited about this decision and the opportunities for both businesses to maximize their potential. I’m extremely confident in Mike and his team to drive a new chapter of growth for Covia Energy,” added Eich.
Commenting on the separation of Covia Energy, Segura stated, “This is an exciting time for Covia’s energy business. We are grateful for the proud legacy of Covia, and are excited for the opportunities that this separation will afford us to drive scale and value creation for the upstream energy space while continuing to provide excellent products, service, and reliability for our customers.”
The separation of the two companies is expected to be completed in 2024.