Valero Energy Partners has acquired several businesses from Valero Energy for $671m.

The company acquired outstanding member interests in Valero Partners Houston and Valero Partners Louisiana.

Assets of Valero Partners Houston include storage tanks with 3.6 million barrels of storage capacity, while Valero Partners Louisiana has 10 million barrels of storage capacity.

“This acquisition is our largest yet and is consistent with our previously communicated accelerated growth strategy.”

Valero Partners Houston operates a crude oil, intermediates, and refined petroleum products terminal situated on the Houston ship channel that supports Valero’s refinery in Houston.

Valero Partners Louisiana operates a crude oil, intermediates, and refined petroleum products terminal located on the Mississippi River in Norco, Louisiana, that supports Valero’s refinery in St. Charles.

The businesses are expected to add $75m to earnings before interest, taxes, depreciation and amortization in the initial year of operation.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The deal will be financed with $211m of cash, $200m from a revolving credit facility, $160m from a five-year loan agreement and the issuance of about $100m in stock.

Valero Energy Partners chairman, president, and chief executive officer Joe Gorder said: “This acquisition is our largest yet and is consistent with our previously communicated accelerated growth strategy.”

Valero Energy Partners is a fee-based, growth-oriented, traditional master limited partnership formed by Valero Energy Corp to own, operate, develop, and acquire crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets.

The company’s assets include crude oil and refined petroleum products pipeline and terminal systems in the Gulf Coast and Mid-Continent regions of the US.