November 09, 2020 [Business Wire] – NuStar Energy L.P. announced today that it has entered into an agreement to sell its terminals in Texas City, Texas, to BWC Terminals for $106 million. The acquisition is expected to close in the fourth quarter of 2020, subject to the satisfaction of customary closing conditions.
“While the Texas City terminals are great assets with outstanding operations and employees, the location and unique configuration of these terminals are no longer synergistic with NuStar’s strategies for our other Gulf Coast assets,” said Brad Barron, president and CEO of NuStar. “For this reason, we determined that the best path forward for the continued success of these facilities and NuStar is to allow them to be acquired by an entity that can take advantage of the terminals’ niche petrochemical and petroleum capabilities. We are pleased that BWC Terminals has just such a business model.
“And while it was a difficult decision, this divestiture will allow us to deploy the proceeds to further improve our debt metrics and self-fund a larger proportion of our capital program,” Barron said.
“We are pleased that our Texas City employees will now have the opportunity to be a part of a strong and growing company with a business model that is more operationally synergistic with the strengths of these terminals,” Barron added. “This should create more growth opportunities for the operations and provide employees with more resources to ensure their continued growth and success as well.”
BWC Terminals CEO Mike Suder commented, “I’m confident that Texas City is a natural fit for the BWC organization. Like NuStar Texas City, we store a diverse array of liquids—including hydrocarbons, chemicals, and agricultural products—and we believe the strength of our combined business will help further develop Texas City’s operational capabilities.”
Barclays served as exclusive financial adviser to NuStar on the transaction.
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