Zenith Energy has announced plans to acquire Arc Logistics Partners to create a terminaling business with more than 22 million barrels of storage.
Zenith and Warburg Pincus have formed Zenith Energy US, which will acquire Arc. The company will acquire all of Arc's outstanding public common units, all of the common units owned by Lightfoot Capital Partners and certain private interests owned by the sponsors of Arc Logistics.
The merger agreement and the transactions have been approved by the boards of directors of both Zenith US and Arc Logistics.
Once complete Zenith will have a terminaling business with more than 22 million barrels of crude oil, petroleum products and other liquids storage.
Jeff Armstrong, president and CEO of the Zenith businesses, says: 'We are very excited to build a platform enabling us to enter the US terminaling market, and very pleased to combine with Arc Logistics in this transformative transaction that will significantly increase the Zenith group of companies' footprint, expanding our scope of services to our combined customers worldwide.
'Arc Logistics' diversified portfolio of logistics assets serves critical links between supply and demand locations in the US, and we intend to further develop their existing terminals as well as pursue new developments throughout North America.'
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