Blueknight Energy Partners is set to acquire two asphalt storage facilities in Oklahoma and Georgia for $32.5 million.
The facility in Bainbridge, Georgia, will be acquired from Ergon Asphalt & Emulsions and Ergon Terminalling. As part of the deal, Ergon will assign a long-term storage, throughput and handling agreement with a third-party for the facility.
The Muskogee, Oklahoma facility will be acquired from Frontier Terminal and Cummins Investment Corporation. Blueknight has entered into two third-party storage, throughput and handling agreements associated with the Muskogee terminal.
Both transactions are expected to close in the fourth quarter. Once complete, Blueknight will then own a network of 56 asphalt terminals with a combined capacity of 10.3 million barrels of asphalt and residual fuel oil storage.
The Bainbridge terminal has 200,000 barrels of storage and comes with a long-term contract with a credit-worthy third-party customer. The Muskogee terminal include 500,000 barrels of storage and 245 acres of property, 150 of which the company expects to develop further in the future. The company has entered into two long-term storage, throughput and handling contracts with credit-worthy third-party customers.
Mark Hurley, Blueknight's CEO, says: 'These acquisitions primarily represent the reinvestment of proceeds received from 2017 asset sales and include high-quality, long-term contracts at very reasonable acquisition multiples.'
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