NuStar Energy LP has entered into an agreement to sell its terminals in Texas City, Texas, to BWC Terminals for $106 million.

The acquisition is expected to close in the fourth quarter of 2020, subject to the satisfaction of customary closing conditions.

Brad Barron, president and CEO of NuStar, said: “While the Texas City terminals are great assets with outstanding operations and employees, the location and unique configuration of these terminals are no longer synergistic with NuStar’s strategies for our other Gulf Coast assets.

“For this reason, we determined that the best path forward for the continued success of these facilities and NuStar is to allow them to be acquired by an entity that can take advantage of the terminals’ niche petrochemical and petroleum capabilities. We are pleased that BWC Terminals has just such a business model. And while it was a difficult decision, this divestiture will allow us to deploy the proceeds to further improve our debt metrics and self-fund a larger proportion of our capital programme.”

He added: “We are pleased that our Texas City employees will now have the opportunity to be a part of a strong and growing company with a business model that is more operationally synergistic with the strengths of these terminals. This should create more growth opportunities for the operations and provide employees with more resources to ensure their continued growth and success as well.”

Barclays served as exclusive financial adviser to NuStar on the transaction.

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2nd November 2020