Blueknight Energy Partners has acquired a Cheyenne, Wyoming asphalt terminal previously owned by Simon Contractors, a multistate, heavy highway contractor.
The deal was made through Blueknight subsidiary BKEP, which has also entered into a long term lease contract with Western States Asphalt, Inc, a regional asphalt marketing company based in Spokane, Washington, to lease the Cheyenne facility.
Western States Asphalt has been a customer of BKEP since 2009 and leases additional sites in the region. Western States will continue supplying various products and services to the existing customer base out of Cheyenne, which was constructed in 2003 and includes approximately 10 acres of land and 220,000 barrels of asphalt storage.
The facility produces and handles polymer modified asphalt concrete, emulsions and asphalt cement for a variety of customers in Wyoming and surrounding markets.
“We are pleased to add this terminal to our network of asphalt processing and storage facilities,” stated Mark Hurley, BKEP’s CEO. “This transaction is consistent with our strategy of growing our asphalt business, primarily through acquisitions, and will be immediately accretive to our unitholders. Western States is a key long term customer, and we took this opportunity to restructure existing contracts and incorporate the new Cheyenne facility into those agreements as part of our ongoing relationship.”
