PBF Logistics has agreed to purchase CPI Operations from Crown Point International, which includes a storage facility & other idled assets on the Delaware River for $107 million.
The East Coast Storage assets include a storage facility with four million barrels of multi-use storage capacity, with over 50% being heated storage, an Aframax-capable marine facility, a truck terminal, equipment, contracts and other assets.
With close proximity to the Paulsboro refinery, the assets are expected to provide synergy opportunities at the company's sponsor, PBF Energy.
Once the transaction is closed, PBF Logistics expects to invest $8.5 million over the next two years on projects to enhance capabilities at the facility and expects to achieve run-rate earnings before interest, taxes, depreciation and amortisation of $15.5 million at the end of 2020.
Matt Lucey, PBF Logistics executive vice president, says: 'The acquisition of the East Coast Storage assets will be immediately accretive and will strategically position the partnership for the upcoming IMO's low sulphur fuel specification change in 2020 by adding significant marine accessible storage assets to our portfolio that are capable of handling a range of material from finished petroleum products and residual fuel oils to heavy, high sulphur refinery feedstocks.'
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