March 18, 2011 [Buckeye Partners] - Buckeye Partners, L.P. announced today that it has signed a definitive agreement with BP Products North America Inc. and its affiliates (“BP”) to acquire 33 refined petroleum products terminals with total storage capacity exceeding 10 million barrels and approximately 1,000 miles of refined petroleum products pipelines, including BP’s approximately 50% interest in Inland Corporation (“Inland”), for a total transaction purchase price of$225 million.
The terminal and pipeline assets are located in the Midwestern, Southeastern, and Western United States, further extending Buckeye’s operations into new, key geographic markets.Buckeye’s proposed acquisition of BP’s interest in Inland, which represents $60 million of the total transaction purchase price, is subject to Inland’s other shareholders’ existing rights of first refusal. Buckeye expects the acquisition to close in the second quarter of 2011, subject to regulatory approvals,other customary closing conditions, and, with respect to BP’s interest in Inland, the co-owners’ right of first refusal.
“This transaction is a key step in our continued expansion and geographic diversification efforts and further facilitates our participation in several key growth markets outside our current system footprint,” said Forrest E. Wylie, Buckeye’s Chairman and CEO. “This acquisition provides stable tariff and feebased revenue streams that are supported by multi-year throughput commitments by BP. We expectthe acquisition to be immediately accretive to our distributable cash flow. In addition, we have identified several opportunities for further commercial development of these assets and anticipate a smooth integration and rapid realization of operating synergies with our existing assets.”
