US fuel distributor Sunoco has bought eight refined product terminals from NuStar Energy and one from Cato for a total of US$255.5 million (€215.1 million).
From NuStar, Sunoco has bought one terminal in the Midwest, the Blue Island terminal in Illinois, and seven refined product terminals on the US east coast – Andrews Air Force Base, Baltimore and Piney Point in Maryland, Jacksonville in Florida, Linden and Paulsboro in New Jersey, and Virginia Beach in Virginia. The combined storage capacity of the terminals is 14.8 million bbl.
The 140,000 bbl Cato terminal is located in Salisbury, Maryland and stores gasoline and distillate. Cato has agreed to a five-year extension of its existing fuel distribution with Sunoco as part of the deal.
The acquisitions are expected to close in Q4 2021, subject to customary closing conditions. Sunoco says that the acquisitions will result in a ‘significant expansion’ of its midstream business, enhance its platform for fuel distribution expansion and allow it to remain within long-term leverage and coverage target levels.
‘While these terminals are solid assets with great operations and employees, these facilities are no longer synergistic with NuStar’s core assets, which, in the current competitive climate is critical to their long-term success,’ says Brad Barron, president and CEO of NuStar. ‘Sunoco LP has assets in NY Harbor and in the Southeast US that should provide such synergistic opportunities to ensure the continued success of these facilities and employees.’