PBF Logistics has entered into an agreement with Crown Point International, formerly known as Axeon Specialty Products, to purchase its wholly-owned subsidiary, CPI Operations, whose assets include a storage facility and other idled assets located on the Delaware River near Paulsboro, New Jersey (East Coast Storage Assets).
The total consideration for the assets is $107m, which is comprised of an initial payment at closing of $75m with the balance being payable one year after closing.
The East Coast Storage Assets include a storage facility with approximately four million barrels of multi-use storage capacity (of which over 50% 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.
Following closing, 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. The transaction is expected to close in the fourth quarter subject to customary regulatory and other approvals.
Commenting on the acquisition, Matt Lucey, PBF Logistics Executive Vice President, said: “The acquisition of the East Coast Storage Assets will be immediately accretive and will strategically position 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 that are capable of handling a range of material from finished petroleum products and residual fuel oils to heavy, high-sulfur refinery feedstocks.”
For more information, visit: www.pbflogistics.com
23rd July 2018