TEPPCO Partners LP has purchased marine assets, including 19 boats and 28 barges, from TransMontaigne Product Services Inc for all cash consideration of $50 million.
The acquisition complements the partnership’s existing fleet of vessels that transports petroleum-based products along the nation’s inland waterway system and in the Gulf of Mexico. The newly acquired marine assets are based primarily in Miami FL, with additional assets in Mobile AL and Houston TX. The acquired vessels primarily deliver bunker fuels for cruise liners and cargo ships as well as fuel oil for electric generation plants.
Market fundamentals in the areas served by the acquired assets offer TEPPCO the potential to expand relationships with existing customers, and provide additional transportation services to other third parties. The partnership also expects the transaction to provide synergies and opportunities to optimize the existing fleet acquired in February 2008, resulting in the formation of the Marine Services segment.
With the TransMontaigne purchase, TEPPCO increases its fleet to 70 boats and 153 barges.