Stolt-Nielsen Transportation Group Ltd (SNTG), a wholly owned subsidiary of Stolt-Nielsen SA, has signed a definitive agreement with Kinder Morgan Energy Partners LP for the sale of its Chicago IL and Perth Amboy NJ bulk liquid terminal facilities for $70 million.
Closing is subject to standard conditions and receipt of local regulatory and third-party approvals. Providing these are obtained, the transaction was to have been completed by the end of SNSA's fiscal year Nov 30, 2001.
Reginald Lee, chief executive officer of SNTG, said, “While the Chicago and Perth Amboy facilities have historically been profitable, we have not been able to develop them as an integral part of SNTG's distribution network, and divestment fits our overall development strategy. We will continue to expand our terminal network, either through direct investment or with alliance partners, in ports where we can integrate terminals with our distribution system and improve the efficiency of parcel tanker operations. This divestiture of non-core assets will enable us to pay down debt and de-leverage the balance sheet.”