Sunoco LP (Sunoco) has announced the execution of a definitive agreement to purchase the fuels business (the fuels business) from Emerge Energy Services LP (Emerge) for US$178.5 million, subject to working capital adjustments. The fuels business comprises Dallas-based Direct Fuels LLC and Birmingham-based Allied Energy Company LLC, both wholly owned subsidiaries of Emerge, and engages in the processing of transmix and the distribution of refined fuels.
The fuels business includes two transmix processing plants with attached refined product terminals located in the Birmingham, Alabama and greater Dallas, Texas metro areas. Combined, the plants can process over 10 000 bpd of transmix, and the associated terminals have over 800 000 bbls of storage capacity.
"We are pleased to add the Emerge Fuels Business to the existing Sunoco operating platform," said Bob Owens, Sunoco's President and Chief Executive Officer. "This transaction is consistent with our strategy of expanding our business through the acquisition of assets that are both complementary to our core wholesale and retail network and that further diversify Sunoco's income stream."
The transaction is expected to be immediately accretive to Sunoco with respect to distributable cash flow. It is expected to close during the 3Q16 and is subject to regulatory clearances and the satisfaction of other customary closing conditions.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.tanksterminals.com/storage-tanks/24062016/emerge-energy-enter-definitive-agreement-with-sunoco-to-sell-business-assets-3575/
You might also like
LBC Tank Terminals has taken the final investment decision to expand its terminal in Rotterdam with 98 000 cubic metres, bringing the total storage capacity to 280 000 cubic metres by 2026.