May 14, 2012 [Oiltanking GmbH] - Bulk Handling USA, Inc., a wholly-owned subsidiary of Oiltanking Holding Americas, Inc., announced that it has entered into a definitive agreement to acquire a 100% ownership interest in U.S. United Bulk Terminal, LLC (“UBT”), a wholly-owned subsidiary of United Maritime Group, LLC (“UMG”).
Located on the Mississippi River, UBT is the largest dry bulk export terminal on the Gulf Coast and is considered a critical logistic link in coal and petroleum coke international supply chains. In addition to an active, on-going business that handled over 11 million tons in 2011, the facility has ample land for further expansion and development. The facility offers a full suite of ground-based service capabilities including storage, blending and sampling and has a market leading dry bulk barge fleeting operation as well as the ability to accommodate multiple vessels simultaneously.
“We are excited to add this premier set of assets to our growing dry bulk platform, and we believe that UBT will serve as the foundational asset to drive further organic opportunities and acquisitions for us going forward,” said Carlin Conner, CEO and President of Oiltanking Holding Americas. “We anticipate significant growth at this terminal over the next two years and plan to spend approximately $70 million to increase throughput capacity, improve handling flexibility and develop world-class blending capabilities.”
“We are eager to leverage Oiltanking’s global presence and work together with the employees and customers to jointly grow Oiltanking’s dry bulk platform into a leading provider of bulk handling services globally,” added Jan Vogel, President of Bulk Handling USA.
Commenting further, Conner said, “This strategic acquisition will give Oiltanking Holding Americas access to a large, diversified customer portfolio of producers, refiners, traders and utilities that will complement our existing asset base in North America which consists of terminals in Texas City and Port Neches, Texas; Joliet, Illinois; our 71% combined general partner and limited partner interests in Oiltanking Partners, L.P. (NYSE: “OILT”); and Bulk Handling USA, Inc., which through a joint-venture currently operates two petroleum coke handling facilities”.
Completion of the acquisition is subject to customary closing conditions, including customary regulatory approvals, and the transaction is expected to close in the second quarter of 2012.
