Valero LP completes acquisition of Kaneb
Aug 1, 2005 12:00 PM
Valero LP has successfully completed its acquisition of Kaneb Services LLC and Kaneb Pipe Line Partners LP. With an enterprise value of more than $4 billion, the combined partnership will be one of the largest terminal and petroleum liquids pipeline operators in the United States. As part of the nearly $2.7 billion transaction, Valero LP also acquired all of Kaneb Services' equity securities for $43.31 cash per share and converted Kaneb Partners' units to Valero LP units at an exchange ratio of 1.0231 Valero LP unit for each Kaneb Partners' unit. Kaneb Services and Kaneb Partners are now wholly owned subsidiaries of Valero LP. The general partner of the combined partnership will continue to be owned by affiliates of Valero Energy Corp.
Assets of the combined partnership, which will retain the name Valero LP, include about 9,150 miles of pipeline consisting of some 6,350 miles of refined product pipelines, 800 miles of crude oil pipelines, and a 2,000-mile anhydrous ammonia pipeline. The partnership also owns 94 terminal facilities and four crude oil storage tank facilities in 25 US states, Canada, Mexico, the Netherlands Antilles, the Netherlands, Australia, New Zealand, and the United Kingdom. The system has approximately 77.6 million barrels of storage capacity.
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