The transaction values Epic at $171.5 million, not including working capital adjustments, and is expected to close in the third quarter of 2017, subject to customary regulatory approvals, and satisfaction of other conditions precedent.

“The addition of Epic adds an exciting new dimension to IMTT,” said Richard Courtney, chief executive officer of IMTT. “Together with a greatly expanded product line – jet fuel – Epic provides us with a presence in the strategically important Port of Savannah, some exciting new customer relationships and an energetic team assembled by terminal industry veteran David Vattimo.”

“IMTT and Epic are a great fit, commercially and culturally,” said Vattimo. “We have put a tremendous amount of effort into improving and leasing the Epic assets over the past several years – we think both the team and the tanks will prove to be a great addition to IMTT.”

Epic operates a portfolio of seven terminals in the U.S. Southeast and Southwest, with principal operations in Savannah, Georgia. The facilities comprise approximately 3.1 million barrels of refined petroleum, asphalt, biofuels and chemical storage capacity. The business is supported by take-or-pay contracts similar to those at IMTT.

Epic terminals will continue to store and handle jet fuel at a number of locations for customers including an affiliate of the U.S. Department of Defense that has been an Epic customer for more than 20 years.

The acquisition is being funded by IMTT parent, Macquarie Infrastructure Corporation , with the issuance of $125.0 million in new MIC shares to the sellers and $46.5 million in cash including with drawings on IMTT’s revolving credit facility. MIC expects the acquisition to be accretive to its Free Cash Flow in 2018. 

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