PBF Logistics (PBFX) has agreed to acquire the Toledo Storage Facility (Tank Farm #2) from a subsidiary of North American refiner PBF Energy for $150 million (€121.5 million).
‘Tank Farm #2 is PBFX’s second asset drop-down acquisition and reflects our ongoing commitment to deliver growth to PBFX’s unit holders,’ says Thomas Nimbley, CEO of PBFX and PBF Energy. ‘At the same time, PBF Energy gains additional cash and resources to pursue growth opportunities and to return value to our shareholders.’
The purchase price payable to PBF Energy will consist of $135 million cash and PBFX limited partner interests of $15 million.
Tank Farm #2 is located at PBF Energy’s Toledo refinery and consists of approximately 3.9 million barrels of feedstock and product storage capacity and related facilities, including propane storage and a loading facility.
Upon closing, expected on 12 December, PBFX plans to enter into a 10-year term storage and terminaling services agreement with subsidiaries of PBF Energy containing storage fees and a minimum throughput volume commitment of 4,400 barrels per day at the propane storage and loading facility.