PFB Logistics is set to acquire four refined product terminals in the greater Philadelphia region from Plains All American Pipeline.
The acquisition, which costs $100 million, expands PFB’s storage and terminalling footprint and introduces third-party customers to its revenue base. The transaction is expected to close in the second quarter of 2016.
PBFX CEO Thomas Nimbley says: ‘The acquisition of the East Coast Terminals is PBFX’s first third-party acquisition, adds meaningful third-party, fee-based revenue and represents an attractive acquisition multiple. The addition of the East Coast Terminals increases total capacity by more than 100% to approximately 8.1 million shell barrels and diversifies its customer and asset base.
The terminals are located in a region with significant local demand for refined products. They also provide a link for 1.3 million barrels per day of refining capacity located within 100 miles of the terminals and associated downstream demand. In total they comprise 57 product tanks with pipeline connections and other associated infrastructure.
PBF expects to invest around $5 million to improve infrastructure in order to increase throughput capability.