Global Partners, a US-based petroleum products storage and distribution company, has reached a $305.8m asset purchase agreement with Motiva Enterprises.
Under the agreement, Global Partners will purchase 25 liquid energy terminals in Texas, the Southeast, and the Atlantic Coast.
The terminals have a gross storage capacity of 8.4 million barrels.
Currently, Global Partners owns or leases 24 liquid energy terminals in the Northeast, North Dakota, and Oregon regions.
The company expects the acquisition to bolster its terminal capacity and geographic footprint covering the US Gulf and the Atlantic Coast.
Global Partners noted that Motiva’s assets are directly connected to the docks and refined product pipelines such as Colonial, Plantation, Enterprise, Explorer, and Magellan.
Following the deal, Global Partners’ storage capacity is expected to increase by 85% to reach 18.3 million barrels.
Global Partner president and CEO Eric Slifka said: “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 a premier 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. The transaction is backed by a 25-year agreement with Motiva, our anchor tenant, that includes minimum annual revenue commitments.”
Motiva president and CEO Jeff Rinker 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 am 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 the growth of our marketing business.”
Subject to regulatory approvals and other closing conditions, the transaction is expected to be completed by the end of 2023.
BofA Securities served as the exclusive financial advisor to Global Partners for the transaction.
