Andeavor has acquired Delek US Holdings' West Coast asphalt terminals for $75 million.
The assets include four wholly-owned terminals in Elk Grove, Bakersfield and Mojave in California and Phoenix in Arizona, as well as a 50% interest in the Paramount Nevada Asphalt Company joint venture in Fernley, Nevada.
Andeavor expects to grow this new addition to its asphalt business to serve more customers and expand its product offering. Andeavor expects to improve the business and increase sales by 20% over the next three years.
The acquisition will bring Andeavor's total asphalt capacity to more than 430,000 tonnes across ten terminal locations.
The deal is expected to close in the first half of 2018.
Keith Casey, executive vice president of commercial and value chain for Andeavor, says: 'We are excited to leverage our experience to grow our asphalt offering in the West Coast and Southwest regions.
'We expect this investment to drive higher integrated margins across the value chain, offset impacts created by bunker fuel specification changes and improve the value of heavy resid produced at our refineries.'
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