February 27, 2018 [Cision] - American Midstream Partners, LP (NYSE: AMID) ("AMID" or "Partnership") today announced it has entered into a definitive agreement for the sale of its refined products terminalling business (the "Refined Products Terminals") to DKGP Energy Terminals LLC, a joint venture between Delek Logistics Partners, LP and Green Plains Partners LP, for approximately $138.5 million in cash, subject to working capital adjustments.
The transaction is expected to close in the first half of 2018. The divestiture of the Refined Products Terminals, located in Caddo Mills, Texas and North Little Rock, Arkansas, represents meaningful progress towards redeploying capital to complementary assets, including Southcross, and other strategic growth opportunities.
In addition, the divestiture of the Refined Products Terminals simplifies AMID’s business profile while creating capital flexibility. The Partnership anticipates it will also execute sales of additional terminal assets, including its marine and specialty chemical storage facilities, as well as other potential non-core assets, as the Partnership redeploys capital into higher growth assets.
“This transaction demonstrates AMID’s continued execution on its capital optimization strategy of simplifying its business and redeploying capital from non-core assets toward complementary and strategic opportunities,” stated Lynn Bourdon III, President and Chief Executive Officer.
Closing of the sale of the Refined Products Terminals is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Act.
Barclays acted as exclusive financial advisor and Sidley Austin LLP served as legal counsel to American Midstream for the Refined Products transaction.
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