NuStar acquires Asphalt Holdings from equity firm
Jun 7, 2010 11:55 AM
NuStar Energy LP has reached an agreement with Denham Capital, an energy- and commodities-focused global private equity firm, to acquire Denham’s equity holdings in Asphalt Holdings Inc for $44.1 million. The acquisition is expected to be immediately accretive to NuStar Energy’s distributable cash flow per unit.
The acquired operations involve the receipt, storage, and distribution of asphalt and crude oil via marine vessels, barges, tank trucks, and railcars. This acquisition provides NuStar with three storage terminals that include 24 storage tanks with a total capacity of approximately 1.8 million barrels. Additionally, the terminals have rail- and truck-loading facilities and three docks with barge or ship access. The facilities are in Alabama, on 17 acres of land on Blakeley Island on the east bank of the Mobile River and another 28.5 acres at the Port of Chickasaw.
“I am excited to announce the acquisition of Asphalt Holdings and its three storage terminals,” said Curt Anastasio, chief executive officer and president of NuStar Energy LP and NuStar GP Holdings LLC. “Acquiring the three storage terminals allows us to add to our already attractive set of fee-based assets in the United States. Through this acquisition, we expand our terminal presence into a new market in the US Gulf Coast and have the opportunity to expand into new asphalt markets as well.”
For more information, visit www.nustarenergy.com.
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