SemGroup® Corp. has completed the sale of its SemLogistics business unit to Valero Logistics UK Ltd, a subsidiary of Valero Energy Corp. In addition to the sale price, the agreement provides for potential earnout payments to be made to SemGroup if certain revenue targets are met in the four years following close of the transaction.
SemGroup intends to use proceeds from the sale toward its capital raise plan and to pre-fund capital growth projects.
“The sale of our United Kingdom petroleum storage facility is an important achievement in our strategy to simplify our portfolio and focus on the North American growth areas we have identified along the Gulf Coast, Mid-Continent and Canada,” said SemGroup President and CEO, Carlin Conner. “I appreciate the team at Milford Haven for their dedication to safely and efficiently operating the facility. We will miss our colleagues but are pleased that the facility will now be owned by Valero, which will continue to operate it as a third-party terminal.”
Read the article online at: https://www.tanksterminals.com/storage-tanks/13042018/semgroup-sells-uk-petroleum-storage-business/