Bulk liquid storage specialist Rubis has signed an agreement with global infrastructure investor I Squared Capital, which states I Squared will indirectly purchase 45 per cent of the 99.4 per cent equity stake held by Rubis in Rubis Terminal.
Rubis Terminal provides critical bulk-liquid storage infrastructure to a diversified base of industrial customers and across a broad range of petroleum, chemical and agri-food products. It has a portfolio of 13 facilities and a capacity of 3.5 million cubic meters across France, Belgium, The Netherlands and Turkey.
This news comes on the heels of Rubis’ completion of the employee consultation process and the positive opinion obtained from the works council of Rubis Terminal.
Rubis, which also specialises in petroleum products distribution, said in a statement that the joint venture “will accelerate Rubis Terminal’s strategic plan to strengthen its position within its current footprint, diversify its product offerings and explore potential expansion outside of Europe”.
The company will retain around 55 per cent of the shares in Rubis Terminal and will jointly control Rubis Terminal alongside I Squared Capital, but the change in governance does mean Rubis will no longer consolidate Rubis Terminal under the full consolidation method. Instead it will account for its ownership under the equity method. The existing management team will remain in place.
The transaction values Rubis Terminal at an enterprise value of £850 million, (or 11.2 times its 2018 EBITDA including its 50 per cent share of Antwerp), and will result in what it described in a statement as “a substantial deleveraging of Rubis’s balance sheet”.
As part of the transaction, Rubis Terminal has obtained a financing commitment from affiliates of JP Morgan, Crédit Agricole CIB and Société Générale for a refinancing of up to £365 million.
The completion of the transaction is subject to anti-trust clearance both in Europe (on behalf of Belgium and The Netherlands), individually in Turkey, and approval under the French foreign investments control. Subject to these regulatory and other customary conditions, closing of the transaction should take place during the first half of this year.
For more information visit www.rubis-terminal.com
