SemGroup Corporation will sell its asphalt business SemMaterials Mexico to Ergon Asfaltos Mexico HC.
The assets include 14 in-country terminals and two national laboratories. It is the largest supply of liquid asphalt cement products and product application services in the country and had a presence in every Mexican territory.
SemGroup intends to use proceeds from the $70 million sale towards its capital raise plan associated with the acquisition of Houston Fuel Oil Terminal Company, and to pre-fund capital growth projects.
President and CEO Carlin Conner says: ‘Divesting these non-core legacy assets is an important step as we raise capital and clearly define our portfolio of uniquely-advantaged midstream services on the Gulf Coast, Mid-Continent and in Canada.’