April 15, 2015 [OPIS] - ArcLight Capital Partners, a leading private equity firm focused on North American energy infrastructure assets, based in Boston, finalized the purchase of John Arnold's Pennsylvania-based Petroleum Products Corp. (PPC), a sale exclusively reported by OPIS earlier this year.
The acquisition was made through Penn Products Terminals, a newly formed portfolio company formed by ArcLight and the PPC assets have been renamed Pyramid LLC. The former PPC assets include a network of high-quality refined product storage terminals in Pennsylvania totaling approximately 9 million bbl of storage capacity.
The facilities store gasoline, diesel fuel, heating oil, kerosene, ethanol and biodiesel, and the terminals are used to distribute these products to customers in Pennsylvania and six surrounding states. The storage hubs are connected by pipeline, barge and rail and can be supplied via the Gulf Coast, New York, Philadelphia and the Midwest.
The terminals are located in Allentown, Altoona, Coraopolis, Dupont, Pittsburgh, Neville Island, Harrisburg, Northumberland, Sinking Springs, Mechanicsburg, Highspire and Lancaster.
The PPC assets went on the market in mid-2014 and drew interest from a number of companies including Marathon Petroleum. ArcLight has invested over $12.7 billion across multiple energy cycles in more than 90 power, midstream and production assets since its founding in 2001.
Since the transaction involved two private companies, a sales price was not disclosed, although we are told the price tag topped $1 billion and that PPC in 2014 boasted an EBITDA of approximately $100 million.
While not a household name for petroleum marketers, ArcLight Capital is well known in energy investment circles. The company once held a stake in the General Partner share of Buckeye and has helped launch public MLPs in natural gas, crude oil, shale and asphalt with an emphasis on logistics.
