PBF Logistics LP has completed the acquisition of CPI Operations LLC which includes a storage facility and other idled assets located on the Delaware River near Paulsboro, New Jersey (the East Coast Storage Assets).
The total consideration of $107m includes an initial payment at closing of $75m, plus working capital, with the balance being payable one year after closing.
Commenting on the acquisition, Matt Lucey, PBF Logistics Executive Vice President, said: “The ongoing execution of our strategic plan continues to deliver meaningful accretive growth for the partnership. The acquisition of the East Coast Storage Assets also strategically positions the partnership for the upcoming International Maritime Organization’s low-sulphur fuel specification change in 2020 by adding significant marine-accessible storage assets to our portfolio. The marine facilities are capable of handling a range of material from finished petroleum products and residual fuel oils to heavy, high-sulphur refinery feedstocks and increase synergy opportunities with our sponsor, PBF Energy.”
The East Coast Storage Assets include a storage facility with approximately four million barrels of multi-use storage capacity, of which over 50 percent is heated storage, an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and other assets. With close proximity to the Paulsboro refinery, the assets are expected to provide synergy opportunities with the partnership’s sponsor, PBF Energy. The partnership expects to invest approximately $8.5m over the next two years in projects to enhance facility capabilities and expects to achieve run-rate EBITDA of $15.5m at the end of 2020.
For more information visit: www.pbflogistics.com
3rd October 2018
