Blueknight Energy Partners has bought nine asphalt terminals from Ergon after the company agreed to buy Blueknight GP Holding.
Ergon Asphalt and Emulsions, a subsidiary of Ergon, has bought 100% membership interests of Blueknight GP Holding. Ergon has agreed to sell the nine terminals as well as $221.1 million of cash for a total consideration of $130.9 million. Additionally, Blueknight has agreed to repurchase 13,335,390 of its Series A preferred units currently owned by Blueknight Energy Holding and CB-Blueknight for $95.3 million.
The nine terminals are located in Kansas, Texas, Arizona, Alabama, Tennessee and Mississippi and include around two million barrels of storage capacity. Once the transactions have closed, Blueknight will own a network of 54 asphalt terminals in 26 states with a combined capacity of 10.2 million barrels of asphalt and residual fuel oil storage.
Blueknight CEO Mark Hurley says: ‘The strategic combination of the two companies and the addition of nine asphalt facilities to our portfolio will create opportunities for growth and increase shareholder value over the long-term.
‘We look forward to a new era with Ergon as the future owner of our general partner. As a long-term customer at 18 of our asphalt terminals we have admired their capabilities and expertise.’