EQT Infrastructure II has agreed to launch a public tender offer to acquire premier provider of bulk liquid storage Westway Group Inc for approximately $419 million in aggregate cash consideration or $6.70 in cash per common share. The deal was announced December 21, 2012.
Parties to the transaction also entered into a definitive agreement to sell Westway’s liquid feed supplement business and certain bulk liquid storage terminals located in
Ireland, Denmark, Korea, and the United Kingdom to an affiliate of ED&F Man Holdings Limited, Westway’s largest stockholder, for a purchase price of approximately $115 million, subject to adjustment.
Headquartered in New Orleans LA, Westway is a premier provider of storage and related services to owners of bulk liquid products worldwide. Following the ED&F Man Transaction, Westway still has more than 330 million gallons of storage capacity through a global network of 19 terminal locations including 14 in the United States, one in Canada, and four in Europe.
Westway focuses on niche liquid products and customized service offerings with strong margin potential and has a leading market position in the agricultural and chemical commodity sectors. Key products stored include petroleum oils, caustics, asphalts, vegetable oils, methyl esters, chemicals, and molasses products, among others.
"Westway has a strong history of providing value-add storage services to a loyal customer base, and we look forward to partnering with its exceptional management team,” said Glen T Matsumoto, partner at EQT Partners, and investment advisor to EQT Infrastructure II. “Demand for storage services continues to grow as the global supply chain for a number of industries becomes increasingly complex. We believe that Westway's ability to provide high quality and reliable storage services to existing customers while also expanding storage services to other growing markets will help foster its next stage of development."
Francis P Jenkins, Westway chairman and chairman of the Special Committee, said: "For over a year, we have been reviewing a variety of strategic alternatives for Westway. After this extensive process, we are excited to announce these transactions with EQT Infrastructure II and ED&F Man. We believe the aggregate value of these transactions achieves our objective of delivering immediate and compelling value for the company's stockholders. We also are confident that we have found excellent owners for the company's businesses. EQT Infrastructure has a strong track record in the bulk liquid storage sector and will be an excellent partner for our terminal employees and customers. ED&F Man owned Westway Feed Products for many years and will continue to grow and succeed with our employees, customers and suppliers."
EQT Infrastructure II was supported by Sterne, Agee & Leach Inc as financial advisor and Freshfields Bruckhaus Deringer as legal advisor.