Kaneb acquires Statia liquids terminaling subsidiaries
Nov 19, 2001 12:00 PM
Kaneb Pipe Line Partners LP, Wichita, Kansas, has announced that it has signed a definitive agreement to acquire all of the liquids terminaling subsidiaries of Statia Terminals Group NV, one of the largest marine terminaling companies in the world.
The acquisition of Statia's terminaling facilities in St Eustatius, Netherlands Antilles, and Point Tupper, Nova Scotia, Canada, has an enterprise value of approximately $300 million. The transaction is subject to certain regulatory approvals and the approval of Statia shareholders.
"We are very excited to announce this agreement. The Statia terminals will be the partnership's largest acquisition to date, and the scope of this acquisition exemplifies the partnership's growth strategy," says John R. Barnes, chairman and chief executive officer of Kaneb Services LLC. "We expect the acquisition to be immediately accretive to cash flow and will significantly increase the value of the partnership and the value of Kaneb Services LLC, whose wholly-owned subsidiary, Kaneb Pipe Line Company LLC, is the partnership's general partner.
Under the terms of the agreement, the partnership will acquire the operating subsidiaries of Statia Terminals Group NV for approximately $193 million plus the assumption of approximately $107 million in debt. Because the acquisition is subject to approval by Statia's public shareholders and standard closing conditions, including the receipt of regulatory approvals, Kaneb will conduct its conference call as soon as such approvals are obtained. The acquisition is expected to close in the first quarter 2002.
Statia's terminaling operations encompass two facilities. The storage and transshipment facility on the island of St Eustatius, which is located east of Puerto Rico, has tankage capacity of 11.3 million barrels. The facility located at Point Tupper, Nova Scotia, Canada, has tankage capacity of 7.4 million barrels. Both facilities provide a broad range of products and services, including storage and throughput, marine services, and product sales of bunker fuels and bulk oil products.