A subsidiary of Delek Logistics Partners has acquired logistics assets from an affiliate of Magellan Midstream Partners for $10 million (€7.9 million) in cash.
These assets include a light products terminal in Mount Pleasant, Texas; a light products storage facility in Greenville, Texas; and a pipeline connecting the locations. The transaction, which closed on 1 October, was financed by cash on hand and borrowings under Delek Logistics’ revolving credit facility.
Uzi Yemin, chairman and CEO of Delek Logistics’ general partner, remarks: ‘This acquisition extends our logistics presence in east Texas and increases our terminal locations to three in the area. It also improves our ability to support Delek US’ Tyler, Texas refinery, which Delek US has announced it expects to expand in early 2015.’
The Mount Pleasant terminal consists of approximately 180,000 barrels of light product storage capacity, three truck loading lanes and ethanol blending capability. The Greenville facility has approximately 325,000 barrels of storage capacity and is connected to the Mount Pleasant terminal by a 76 mile pipeline.