M&A moves

Former Houston energy services CEO's SPAC announces $700M merger with energy transition materials company

A Houston-based SPAC run by the former Weatherford CEO has agreed to merge with a company that's sustainably producing a material required by several energy transition technologies. Photo via Getty Images

Houston-based Pyrophyte Acquisition Corp., a “blank check” SPAC, plans to merge with Canadian quartz silica producer Sio Silica Corp. in a deal valued at more than $700 million.

The companies say the deal carries an enterprise value of $708 million and an equity value of $758 million.

Sio is sitting on a potential supply of 15.2 billion metric tons of high-purity quartz silica, a material needed to produce energy transition technologies such as photovoltaics, solar panels, semiconductors, batteries, and other electronics. Proceeds from the merger will be earmarked for construction of the first phase of Sio’s silica extraction and processing facility near Winnipeg, Manitoba.

“We searched long and hard for the right candidate to combine with Pyrophyte and its energy transition mission. Sio fulfilled all our criteria,” Bernard Duroc-Danner, chairman of Pyrophyte, says in a news release. “We are proud to join Sio on its journey to supply what is becoming in many countries around the world one of the most important strategic minerals for the world’s energy transition.”

In 2021, Pyrophyte’s stock began trading on the New York Stock Exchange in an IPO valued at $201.25 million. Since then, it’s solely been a special purpose acquisition company (SPAC) without any business operations. Typically, a SPAC aims to acquire or merge with a private company that boasts a promising business model.

Duroc-Danner is former chairman, president, and CEO of Houston-based oilfield equipment and services company Weatherford International Ltd.

Calgary, Alberta-based Sio says high-purity quartz silica will represent a $30 billion global market opportunity by 2030. Among the products that rely on silica are semiconductors, solar panels, photovoltaic (solar) cells, optical fibers, and batteries.

Once the deal closes, the combined company will operate as Sio Silica Inc., whose stock will be traded on the New York Stock Exchange. Sio’s CEO, Feisal Somji, will lead the newly formed company.

The deal has been approved by Sio’s and Pyrophyte’s boards but still must be endorsed by the companies’ shareholders.

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A View From HETI

Houston-based CAMS will operate the Mesteño Wind Project, which is home to one of the tallest wind turbine installations in the U.S. Photo via Unsplash.

Houston-based Consolidated Asset Management Services (CAMS), which provides services for owners of energy infrastructure, has added the owner of a South Texas wind power project to its customer list.

The new customer, InfraRed Capital Partners, owns the 202-megawatt Mesteño Wind Project in the Rio Grande Valley. InfraRed bought the wind farm from Charlotte, North Carolina-based power provider Duke Energy in 2024. CAMS will provide asset management, remote operations, maintenance, compliance and IT services for the Mesteño project.

Mesteño began generating power in 2019. The wind farm is connected to the electric grid operated by the Energy Reliability Council of Texas (ERCOT).

With the addition of Mesteño, CAMS now manages wind energy projects with generation capacity of more than 2,500 megawatts.

Mesteño features one of the tallest wind turbine installations in the U.S., with towers reaching 590.5 feet. Located near Rio Grande City, the project produces enough clean energy to power about 60,000 average homes.

In June, CAMS was named to the Financial Times’ list of the 300 fastest-growing companies in North and South America. The company’s revenue grew more than 70 percent from 2020 to 2023.

Earlier this year, CAMS jumped into the super-hot data center sector with the rollout of services designed to help deliver reliable, cost-effective power to energy-hungry data centers. The initiative focuses on supplying renewable energy and natural gas.

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