Spanish oil storage and logistics firm CLH Group has bought 15 terminals in the UK, Ireland, Germany and the Netherlands from Canadian bulk liquids company Inter Pipeline for £420 million (€457 million).
CLH says that the transaction, when completed, will make the company the leading bulk liquid storage company in Europe, with terminals in eight countries. The 15 terminals have a total storage capacity of 18 million bbl.
‘This transaction will expand CLH’s knowledge on chemical products and biofuel storage by gaining the experience of a European leader in these business segments. It is also in line with CLH’s strategy of diversification beyond hydrocarbons in response to the challenges of climate change,’ says CLH CEO Jorge Lanza.
The deal includes 11 terminals in the UK with a capacity of more than 2 million m3, storing chemical products for a number of different supply chains as well as fuels and biofuels. CLH says that these terminals will complement the activities of CLH-PS, its existing UK subsidiary. Also included is one terminal in Ireland, where CLH also has an existing subsidiary, CLH Aviation Ireland, two terminals in Germany and one in the Netherlands.
Inter Pipeline will retain its eight terminals in Sweden and Denmark, which have a total capacity of 19 million bbl. These terminals have an average utilisation rate of 82%, although this was at 98% in the first half of 2020.
Inter Pipeline president and CEO Christian Bayle says: ‘This is a very positive transaction for Inter Pipeline. Monetising a significant portion of our European asset base enables us to focus resources on developing our higher growth Canadian businesses. As such, proceeds from the sale will be used to reduce debt, strengthen our balance sheet and assist with financing our large capital expenditure programme, including the Heartland Petrochemical Complex.’
The deal is expected to be complete by the end of Q4 2020, subject to closing conditions and regulatory approvals.