Global Partners LP to acquire 25 liquid energy terminals

Global currently owns or leases 24 liquid energy terminals in states throughout the Northeast and in North Dakota and Oregon. This acquisition will significantly increase Global’s terminal capacity and geographic reach to cover the Atlantic Coast and the US Gulf. The strategically located assets have a direct connection to a critical network of docks and refined product pipelines — Colonial, Plantation, Enterprise, Explorer, and Magellan. Upon closing, Global’s storage capacity will increase approximately 85% to 18.3 million bbl (based on the partnership’s storage capacity as of 30 September 2023).

“This acquisition is an exceptional opportunity to deliver on our strategy and create value by expanding our footprint into areas with increasing population centres. As an operator of terminals, wholesale distribution and retail marketing, we believe these terminals allow us to leverage our expertise in supply and give us a platform for growth in all aspects of our business,” said Eric Slifka, Global’s President and CEO.

“The transaction is backed by a 25-year agreement with Motiva, our anchor tenant, that includes minimum annual revenue commitments,” Mr Slifka added. “This acquisition, underpinned by the strength of a long-term throughput agreement, will provide the potential for growth into the future.”

Jeff Rinker, Motiva’s President and CEO, said: “With the divestiture of our product terminals, we will increase our focus on growing our core manufacturing and logistics centred around Port Arthur Manufacturing Complex while continuing to strengthen and grow our marketing channels. I’m excited about entering this long-term partnership with Global Partners and believe the relationship with such an outstanding terminal operator will be positive for our customers and support growth of our marketing business.”

The acquisition is subject to customary closing conditions, including regulatory approvals, and expected to close by year-end. Global expects the acquisition to be accretive to distributable cash flow per common unit in the first full year of operations, excluding the impact of first year transition-related expenses. BofA Securities acted as exclusive financial advisor to Global. The purchase price will be funded with borrowings under Global’s revolving credit facility.

Read the article online at: https://www.tanksterminals.com/terminals/10112023/global-partners-lp-to-acquire-25-liquid-energy-terminals/