Inter Pipeline Ltd has completed the acquisition of four petroleum and petrochemical storage terminals in Sweden from a subsidiary of Royal Vopak.
The transaction involved a consideration of SEK865 million (C$131 million) excluding customary closing adjustments, and was funded by capacity available under Inter Pipeline’s revolving credit facility.
“This is an immediately accretive transaction that will further diversify and strengthen our European bulk liquid storage business,” commented Christian Bayle, president and CEO. “The acquisition increases our storage capacity in Europe by approximately 40 percent, while complementing Inter Pipeline’s existing storage operations in the UK, Denmark, Germany, and Ireland.”
As a result of the deal, Inter Pipeline’s total storage capacity in Europe rises to approximately 27 million barrels. It also establishes Inter Pipeline as the largest independent bulk liquid storage provider in Scandinavia.
The Swedish business, which will be renamed Inter Terminals Sweden, and comprises four coastal terminals located at Gothenburg, Malmo, Sodertalje and Gavle.
All four terminals are located along the Baltic Sea and Danish Straits, a major petroleum trade route for marine transport vessels. The Gothenburg terminal is the largest independent storage facility in Scandinavia’s largest port. It has pipeline connection to three local refineries, providing strategic infrastructure to support imports and exports.
