Blackwater specializes in the development and management of third party petroleum, chemical and agricultural bulk liquid storage terminals, with operations in Louisiana, Maryland and Georgia. These terminals are primarily used for heavy oil, agricultural, and petrochemical commodities.  

Arclight is an energy-focused investment firm, with a $3.33 billion capital base as of 2011. It has investments in oil production, power generation and midstream assets. Under the terms of the agreement, holders of Blackwater’s common stock will receive $0.64 per share in cash for each outstanding share of common stock they own.    

The holders of convertible notes will also be entitled to receive cash consideration based on the number of shares of common stock into which the notes are convertible. Taking into account the company’s indebtedness, the implied transaction value is approximately $48.7 million.

Blackwater’s board of directors unanimously approved the transaction and recommends that Blackwater’s stockholders adopt the agreement. Blackwater expects to hold a special meeting of its stockholders to consider and vote on the proposed merger and merger agreement as soon as practicable after the mailing of the proxy statement to its stockholders.   

The transaction is expected to close in the fourth quarter of 2012, subject to the satisfaction of customary closing conditions, including the approval of Blackwater’s stockholders.

Upon consummation of the merger, Blackwater’s common stock will no longer be publicly owned or publicly traded. Under the terms of the agreement, upon consummation of the transaction, Blackwater’s stockholders will receive $0.64 per share, a premium of 29.4% over the average closing share price of $0.49 during the last 30-days ending June 28, 2012 and a premium of 32.1% over the average closing share price of $0.48 over the three-month period ending June 28, 2012.