Valero Energy is to purchase Pure Biofuels Del Peru (PBF) from private equity firm Pegasus Capital Advisors, the company’s first infrastructure investment in South America.
PBF owns a storage terminal with a capacity of approximately 1 million barrels, a biodiesel production facility, and two refined products terminals at Callao and Paita.
The financial terms of the investment have not been disclosed. Pegasus and Management purchased the equity of Pure Biofuels in April of 2012. Over the course of its investment, Pegasus partnered with Management to deleverage the balance sheet and provide strategic growth capital to drive a very significant ramp-up in PBF’s operational capacity and utilisation, resulting in an increase from 24 million gallons in 2012 to 270 million in 2017.
“Pegasus’ investment in PBF aligned with the firm’s focus on sustainability. To meet government mandated clean fuel requirements set forth to reduce air pollution, the Peruvian refined products market is highly dependent on importing fuels. Our partnership with PBF has transformed a modern but once moribund terminal into a critical, cleaner energy infrastructure asset for Peru,” said Alec Machiels, a Partner at Pegasus.
“PBF was able to quickly and dramatically expand its operations without losing consideration for the environment, the health and safety of our employees and the relationship with the communities in which we operate. Pegasus’ flexible capital solution, its entrepreneurial attitude and intellectual capital matched the needs of the opportunity to take PBF to the next chapter of its development,” said Chief Executive Officer Alberto Pinto.