US-based NGL Energy Partners has completed the acquisition of the diversified midstream energy business of Gavilon for approximately $890m.
NGL also completed the issuance and sale of around eight million of its common units to a group of institutional investors, for aggregate proceeds of approximately $240m.
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Gavilion’s crude oil assets include a 50% stake in Glass Mountain Pipeline, 4.14 million owned and 3.85 million leased barrels of storage in Cushing, Oklahoma, a marine terminal and nine truck terminals including around 22 lease automatic custody transfer (LACT) units.
NGL Energy Partners CEO Michael Krimbill said that the Glass Mountain pipeline is scheduled to be operational in January 2014.
"This combination is important for NGL, adding our first major pipeline investment in addition to crude oil storage at Cushing," he added.
Gavilon also leases a network of over 200 trucks, 350 railcars and 8 barges to supply crude oil through its SM&L business.
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By GlobalDataThrough a network of more than 300 distribution terminals across 39 states, Gavilon, which is owned by funds managed by Ospraie Management, General Atlantic and Soros Fund Management, markets and supplies refined products and natural gas liquids.
Gavilon CEO Greg Piper said: "We have multiple organic projects in development and look forward to continuing to enhance and expand our energy footprint."
NGL owns and operates a vertically integrated energy business with four primary businesses that include water services, crude oil logistics, NGL logistics and retail propane.
