Sprague Resources has commenced proceedings to buy two refined product terminal assets on Long Island, New York, from Carbo Industries and Carbo Realty.
The terminals are located in Inwood and Lawrence, and have a combined petrol, ethanol and distillate storage capacity of 157,000 barrels. The terminals are supplied primarily by pipeline and have the ability to accept product deliveries by barge and truck.
Carbo provides the storage, blending and additive injection capabilities to serve major branded petrol marketers as well as unbranded petrol/distillate marketers focused on the New York City and Long Island markets.
The deal is expected to cost $70 million, plus payments for inventory and other customary items.
David Glendon, president and CEO of Sprague, says: 'The Carbo facilities have long been an integral component of our distribution network and we are thrilled to convert our position from tenant to owner in this critical location, further solidifying our status as one of New York's premier refined products terminal operators and marketers.
'While the Carbo terminals' total combined storage capacity will rank among the smallest in our network, their expected combined annual throughput will be higher than any single Sprague-owned facility.'
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