Par Pacific to acquire US Oil & Refining Co.
Published by Alex Hithersay,
Editorial Assistant
Tanks and Terminals,
Par Pacific Holdings Inc. has announced that it has signed a definitive agreement to acquire US Oil & Refining Co. and certain affiliated entities (US Oil), a privately-held downstream business, for US$358 million plus net working capital.
The acquisition includes a 42 000 bpd refinery, a marine terminal, a unit train-capable rail loading terminal, and 2.9 million bbls of refined product and crude oil storage. The refinery and associated logistics system are located in Tacoma, Washington, US, and currently serve the Pacific Northwest market.
US Oil's refinery is located on 139 acres of fee-owned land near Tacoma. The 42 000 bpd refinery has the flexibility to optimise its crude slate based on market conditions; currently, discounted Bakken and Cold Lake crude represent over 95% of its current crude slate.
US Oil's logistics assets include 2.9 million bbls of storage capacity, a proprietary 14-mile jet fuel pipeline, a marine terminal with 15 acres of waterfront property, a unit train rail facility with 107 unloading spots and a truck rack with six truck lanes and 10 loading arms. These assets provide connectivity to Bakken, Canadian and Alaskan crude and Pacific, West Coast, Pacific Northwest and Rockies product markets.
Under the terms of the agreement, Par Pacific will purchase 100% of the equity interests of US Oil for total consideration of US$358 million plus net working capital. For the 12 months ended 30 September 2018, US Oil generated adjusted EBITDA of approximately US$86 million. Par Pacific estimates that annual operational and cost synergies of US$7.5 million – 12.5 million will result from the transaction.
Read the article online at: https://www.tanksterminals.com/terminals/28112018/par-pacific-to-acquire-us-oil-refining-co/
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