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.
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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.
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.
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By GlobalDataThe 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.
