Covia Holdings Splits Into Two Independent Entities: A Strategic Move for Growth

Industry titan Covia Holdings LLC has declared its intent to partition its Energy and Industrial businesses into two distinct entities. This strategic maneuver is aimed at empowering each division to concentrate on their unique expansion strategies, thus amplifying their individual market value.

A New Chapter for Covia Solutions

The Industrial branch will continue its operations under the banner Covia Solutions, supplying an extensive selection of products, including high-purity silica sand, nepheline syenite, feldspar, kaolin, ball clays, cristobalite, and coated materials. These materials form the backbone of several sectors such as construction, paint manufacturing, plastics, architectural and specialty glass, and ceramics.

Emergence of Covia Energy

Simultaneously, Covia Energy will come into existence as a specialized sand company dedicated to serving the energy industry. Its primary function will be to provide proppant and logistical solutions, predominantly to North American energy firms. Both Covia Solutions and Covia Energy are set to gain from individualized capital structures, investment propositions, and independent management teams. Their scale advantages will further enable them to deliver superior customer solutions.

Leadership and Future Prospects

Andrew Eich, the President and CEO of Covia Holdings, underlined the successful implementation of growth strategies over the past three years. These strategies have now positioned the businesses to operate independently. Michael Segura, who joined Covia in 2023 as the President of the Energy Division, is set to take over as the President and CEO of Covia Energy following the separation. The finalization of this corporate restructuring is slated for completion within the year 2024.

The decision to divide the businesses is a testament to the company’s commitment to unlock the full potential of its Energy and Industrial units. As separate entities, they will have the autonomy to steer their growth trajectory, fostering an environment of innovation and competitiveness.