SemGroup Energy Partners (SGLP) has agreed to acquire 46 US liquid asphalt cement and residual fuel oil terminalling and storage facilities from SemGroup subsidiary SemMaterials for $378.8 million (261 million).
The terminalling and storage facilities, located in 23 states, have an aggregate storage capacity of approximately 6.6 million barrels and represent substantially all domestic liquid asphalt cement and residual fuel oil terminalling and storage facilities owned by SemMaterials.
In connection with the acquisition of the facilities, SGLP will enter into a terminalling and storage agreement with SemMaterials. The terminalling and storage agreement has a seven year term expiring on 31 December 2014, with additional automatic one year renewals unless either party terminates the agreement upon one year's notice.
'Operationally, this acquisition increases our total storage capacity to more than 13 million barrels, expands our footprint from coast to coast and also diversifies our geographic markets and our lines of business,' Kevin Foxx, SemGroup Energy Partners' president and CEO, says.