September 28, 2020 [CLH] – CLH has entered into agreement with Inter Pipeline Ltd (TSX: IPL) to acquire the liquid product
storage facilities of its subsidiary, Inter Terminals (ITL), in the United Kingdom, Ireland, Germany and the Netherlands.
The transaction is expected to complete in the fourth quarter of 2020, subject to customary closing conditions and regulatory approvals.
Through this transaction, a further 15 liquid product storage terminals will be added to CLH’s current network, making the company the leader in Europe with operations in 8 countries. The Chairman of CLH, José Luis López de Silanes, stated that “this agreement represents a unique opportunity to continue the company’s international expansion and consolidate its
presence in the European market”.
CLH’s Chief Executive Officer, Jorge Lanza, added that “this transaction will expand CLH’s knowledge on chemical products and biofuel storage by gaining the experience of a European leader in these business segments. It is also in line with CLH’s strategy of diversification beyond hydrocarbons in response to the challenges of climate change.”
“CLH is acquiring a high‐quality business with an outstanding team who have made an important contribution to the success and growth of Inter Pipeline over the past 15‐years,” stated Christian Bayle, President and Chief Executive Officer of Inter Pipeline.
The 11 UK terminals included in the agreement have a capacity of more than 2 million cubic metres and can store a wide range of liquid products related to a number of supply chains including diverse chemical products, as well astraditional fuels and biofuels. Integrating these terminal facilities in the United Kingdom offer an excellent complement to CLH‐PS, the CLH
Group subsidiary already operating in the country.
In addition, the agreement also includes one terminal in Ireland, where CLH already operates at the Dublin airport through its subsidiary CLH Aviation Ireland, plus two more in Germany and one in the Netherlands.
The ITL businesses in scope of the agreement currently have a workforce of 530 highly experienced and technically qualified employees and CLH is committed to ensure facilities continue to be operated under the highest levels of safety and quality conditions. Citigroup acted as financial advisor to CLH.
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