Blackwater Midstream, a developer and manager of bulk liquid storage terminals, is to be acquired by an affiliate of energy-focused private equity firm ArcLight Capital Partners after entering into a definitive agreement.
Blackwater will be acquired for approximately $44.1 million (€35 million), with the implied transaction value approximately $48.7 million taking into account the company’s indebtedness.
Under the terms of the agreement, Blackwater’s common stock holders will receive $0.64 per share in cash. The company’s common stock will no longer be publicly owned or traded once the transaction has been completed.
The transaction is expected to close at the end of this year, subject to the satisfactory completion of a number of closing conditions, including the approval of Blackwater’s stockholders.
Blackwater Midstream’s CEO Michael Suder says the agreement provides ‘excellent value to our stockholders and positions Blackwater for long-term success’.
Blackwater Midstream has three terminal sites located in Westwego, Louisiana; Brunswick, Georgia; and Salisbury, Maryland. The Westwego facility has an 857,000-barrel storage capacity. Its Salisbury storage terminal comprises a 172,000-barrel capacity and Brunswick can store up to 161,000 barrels of capacity.
Image source: ArcLight Capital Partners