Delek Logistics Partners LP announced that one of its subsidiaries has purchased a set of logistics assets from an affiliate of Magellan Midstream Partners LP for $10.0 million in cash. These assets include a light products terminal in Mount Pleasant TX, a light products storage facility in Greenville TX, and a pipeline connecting the locations.
The transaction, which closed on October 1, 2014, was financed by cash on hand and borrowings under Delek Logistics’ revolving credit facility.
Uzi Yemin, chairman and chief executive officer of Delek Logistics' general partner, said: “This acquisition extends our logistics presence in east Texas and increases our terminal locations to three in the area. It also improves our ability to support Delek US’ Tyler TX refinery, which Delek US has announced it expects to expand in early 2015. Our financial flexibility remains solid and we continue to look for opportunities for future growth.”
The Mount Pleasant terminal consists of approximately 180,000 barrels of light product storage capacity, three truck loading lanes and ethanol blending capability. The Greenville facility has approximately 325,000 barrels of storage capacity and is connected to the Mount Pleasant terminal by a 76 mile pipeline. By the end of 2015, these assets are expected to achieve annualized earnings before interest, taxes, depreciation and amortization (“EBITDA”) of approximately $1.4 million.