The nine terminals acquired by BKEP from Ergon are located in Wolcott, Kan.; Ennis, Texas; Chandler, Ariz.; Mt. Pleasant, Texas; Pleasanton, Texas; Birmingport, Ala.; Memphis, Tenn.; Nashville, Tenn.; and Yellow Creek, Miss., and include approximately 2 million bbl of storage capacity.

Once the transactions described above have closed, Blueknight will own a network of 54 asphalt terminals in 26 states with a combined capacity of 10.2 million bbl of asphalt and residual fuel oil storage.

Ergon, established in 1954 ,is involved in asphalt, crude oil and refined products terminaling, marketing and transportation. This deal is expected to close on or before Sept. 30.

Ergon will get the issuance of 18,312,968 Series A preferred units in a private placement and acquire an aggregate of $5.0 million of common units for cash in a private placement.

Also, Ergon Asphalt & Emulsions, a subsidiary of Ergon, has agreed to purchase 100% of the membership interests of Blueknight GP Holding, which owns 100% of the outstanding membership interests of the general partner of BKEP, which owns the general partner interest and the incentive distribution rights of BKEP.

BKEP has agreed to repurchase 13,335,390 of its Series A preferred units currently owned by Blueknight Energy Holding (Vitol) and CB-Blueknight (Charlesbank and, together with Vitol, the Existing Sponsors) for $95.3 million.

The Existing Sponsors will retain their remaining 4,977,578 Series A preferred units.

BKEP owns and operates a diversified portfolio of complementary midstream energy assets consisting of approximately 7.4 million bbl of crude oil storage located in Oklahoma and Texas, approximately 6.6 million bbl of which are located at the Cushing, Okla., Interchange, approximately 985 miles of crude oil pipeline located primarily in Oklahoma and Texas, approximately 240 crude oil transportation and oilfield services vehicles deployed in Kansas, Oklahoma and Texas and approximately 8.2 million bbl of combined asphalt product and residual fuel oil storage located at 45 terminals in 23 states.

BKEP provides integrated services for companies engaged in the production, distribution and marketing of crude oil, asphalt and other petroleum products. BKEP is headquartered in Oklahoma City, Okla.