Lion Oil owns and operates the 80,000-b/d refinery at El Dorado in Arkansas. It also distributes gasoline and distillates at its terminals in El Dorado, Ark., and Memphis, Tenn., as well as through third-party terminals throughout the central Midwest. Lion Oil’s asphalt products are marketed over racks at the refinery and through offsite terminal locations within its market area.   
Delek US is acquiring the minority equity interest from more than 20 investors, most of whom have been shareholders in Lion Oil since 1985.   Upon closing of the transaction, Delek US increased its total equity ownership in Lion Oil from 88.3% to 100% for about $13 million funded through existing cash on hand.   
Delek US acquired the minority equity interest for a total consideration below the carrying value attributed to the non-controlling interest in Lion Oil as of June 30, 2011.   “By assuming sole ownership of Lion Oil, we have increased flexibility with which to pursue a wider range of strategic initiatives capable of unlocking value for our shareholders, specifically as it relates to the growth and development of our marketing and logistics business,” said Uzi Yemin, president and chief executive officer of Delek US Holdings.    
“Lion’s three product distribution terminals, two crude pipelines and several-hundred-mile gathering system are now wholly owned by Delek US. These assets join the three wholly owned product terminals and pipelines held by our other subsidiaries to comprise a network of logistics assets that span from West Texas into the Midcontinent. Over time, we intend to further grow this area of our business as we seek to expand our inland presence in the downstream energy markets,” he added.