Sunoco has announced the execution of a definitive agreement to purchase the refined products terminalling business from American Midstream Partners (AMID) for approximately $125m. The transaction is expected to close in the fourth quarter of 2018.
The refined products terminalling business consists of terminals located in Caddo Mills, Texas and North Little Rock, Arkansas with a combined 21 tanks, approximately 1.3 million barrels of storage capacity and approximately 77,500 barrels per day of total throughput capacity.
“The acquisition builds on Sunoco’s strategy of adding fee-based refined product terminals into the overall portfolio,” stated Sunoco.
“The divestiture of the Refined Products Terminals, located in Caddo Mills, Texas and North Little Rock, Arkansas, represents continued progress towards American Midstream’s capital allocation strategy designed to reduce leverage and strengthen the partnership,” AMID said. “In addition, the divestiture of the Refined Products Terminals simplifies AMID’s business profile while creating capital flexibility.”
Closing of the sale of the Refined Products Terminals is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Act.
For more information visit www.americanmidstream.com
16th November 2018