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Jan 2, 2013 9:45 AM

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.