Green Plains Partners and Delek Logistics Partners have forms DKGP Energy Terminals, a joint venture in the light products terminalling business.
The 50/50 joint venture company signed a membership interest purchase agreement to acquire two light products terminals from an affiliate of American Midstream Partners for $138.5 million. These terminals are located in Caddo Mills, Texas and North Little Rock, Arkansas. The transaction is expected to close in the first half of 2018.
DKGP will comprise these acquired assets as well as assets contributed by Delek Logistics, with a total value of $162.5 million.
Immediately prior to the closing of the acquisition by the joint venture of American Midstream’s assets, Delek Logistics will contribute to the joint venture its North Little Rock, Arkansas terminal and its Greenville tank farm in Caddo Mills, Texas.
Uzi Yemin, chairman and CEO of Delek Logsitics’ general partner, says: ‘We are excited to partner with Green Plains Partners for its potential ethanol volumes, logistics expertise and industry knowledge as the domestic markets expand blending.
‘This is a great opportunity as it fits our strategy to grow through assets in the markets that we are very familiar with, and by contributing our complementary existing logistics assets in east Texas and Little Rock, we expect to create additional synergies within the joint venture.’