Private equity firm Golden Gate Capital, San Francisco, has acquired privately held, Berkeley Springs, W.Va.-based U.S. Silica Co., the second largest American mining company and a processor of industrial sand used for gas well fracturing, for $200 million.

U.S. Silica president and chief executive officer John Ulizio, who will continue to lead the company along with its existing management team, says, “This is a winning transaction for U.S. Silica’s customers and employees. Golden Gate Capital’s financial backing will enable U.S. Silica to continue to focus on its core end-markets, while also investing in the production of sand for fast-growing end-markets such as frac sand for natural gas drilling and low-iron sand for solar applications.”

Golden Gate committed $200 million of equity and mezzanine financing to fund the acquisition and support future growth initiatives. Preferred Unlimited, a real estate and mining investment firm based in Philadelphia, helped source and structure the deal. Deutsche Bank advised Golden Gate Capital on the transaction.

BNP Paribas arranged $102 million in senior debt financing, and Wachovia provided a $35-million revolving credit facility.

Golden Gate has approximately $9 billion of capital under management.