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

Four energy companies are putting their money where their mouths are following Hurricane Beryl. Photo by Brandon Bell/Getty Images

Four major energy companies in the Houston area have chipped in more than $400,000 to support relief efforts for Hurricane Beryl in Southeast Texas. Nationwide, it’s estimated that the storm caused at least $28 billion in damage and economic losses.

Here’s a breakdown of contributions announced by the four energy companies.

Baker Hughes Foundation

The Baker Hughes Foundation, the philanthropic arm of Houston-based energy technology company Baker Hughes, gave a $75,000 grant to the Houston chapter of the American Red Cross for Hurricane Beryl relief efforts.

“We understand recovery and rebuilding can take weeks or months, and we support the American Red Cross’ mission of providing people with clean water, safe shelter, and food when they need them most,” says Lorenzo Simonelli, chairman and CEO of Baker Hughes.

CenterPoint Energy

Houston-based CenterPoint Energy, which at one point had more than 2 million customers without power due to Hurricane Beryl, says its foundation has donated to several disaster relief organizations in the region. These include the American Red Cross of Coastal Bend, Catholic Charities of the Archdiocese of Galveston-Houston, Combined Arms, and the 4B Disaster Response Network in Brazoria and Galveston counties.

As of July 11, the company had also provided:

  • More than 30,000 bottles of water to cooling centers and distribution centers in the Houston area.
  • Meals to local first responders.
  • Mobile power generation at cooling centers, hospitals, senior living centers, and water treatment plants.

CenterPoint didn’t assign a dollar value to its contributions.

“Our first priority is getting the lights back on. At the same time, we have seen firsthand the devastation our neighbors are facing, and our commitment to the community goes beyond restoration efforts,” says Lynnae Wilson, senior vice president of CenterPoint’s electric business.

ConocoPhillips

Houston-based ConocoPhillips contributed $200,000 to relief efforts for Hurricane Beryl. The company also is matching donations from U.S. employees of ConocoPhillips.

The money is being split among the Houston Food Bank, Salvation Army and American Red Cross.

“Houston is our hometown, and many of our employees and neighbors have been impacted by Hurricane Beryl,” says Ryan Lance, chairman and CEO of ConocoPhillip.

Entergy Texas

Entergy Texas, based in The Woodlands, donated $125,000 to the American Red Cross for Hurricane Beryl relief efforts. The money will go toward emergency needs such as food, shelter, and medical care.

“Our commitment to helping communities in distress remains unwavering, and we are hopeful that our contribution will offer relief and comfort to those facing hardships in the storm’s aftermath,” says Eliecer Viamontes, president and CEO of Entergy Texas.

Entergy Texas supplies electricity to about 512,000 customers in 27 counties. It’s a subsidiary of New Orleans-based Entergy Corp.

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