Sprague Resources, through its operating subsidiary Sprague Operating Resources LLC, is buying the assets of Castle Oil Corporation and certain affiliates, including Castle’s Port Morris terminal and associated wholesale, commercial, and retail fuel distribution business.
Sprague will pay US$56 million in cash and SRLP units, plus payments for Castle’s inventory as of closing. Port Morris terminal is the largest deepwater petroleum products terminal in New York City, with a total storage capacity of 907,000 barrels, handling distillates, residual fuel, asphalt and biodiesel. The terminal includes an interconnected tank system enabling on-site blending and is located on the East River with deepwater marine access on multiple ship and barge berths.
The acquisition is expected to close before the end of the year. “Castle’s strategically located Port Morris terminal provides an outstanding platform for Sprague to strengthen and expand our service in New York City and the surrounding metropolitan area,” said David Glendon, president and CEO of Sprague.