March 01, 2018 [Nasdaq] - SemGroup® Corporation today announced that it has reached an agreement to sell its SemLogistics business unit, a petroleum storage facility in the United Kingdom, to Valero Logistics UK Ltd, a subsidiary of Valero Energy Corporation.
In addition to the sale price, the agreement provides for potential earnout payments to be made to SemGroup if certain revenue targets are met in the four years following close of the transaction. SemGroup intends to use proceeds from the sale toward its capital raise plan and to pre-fund capital growth projects.
“We are pleased to execute this transaction and to reach another milestone in our plan to divest non-core legacy assets and move forward with a more focused North American midstream strategy,” said SemGroup President and Chief Executive Officer Carlin Conner.
“I appreciate the dedication of the SemLogistics’ employees and all they have done over the years to safely and efficiently operate this facility. I’m glad to know they will be joining an industry leader with a strong presence in this region.”
The SemLogistics sale is expected to close by the end of the third quarter of 2018, subject to the receipt of certain governmental approvals and the satisfaction of other customary closing conditions.
“This facility complements our Pembroke refinery and fuel terminal in the UK and Ireland making it a natural fit for the company,” said Joe Gorder, Valero Chairman, President and Chief Executive Officer. “This purchase demonstrates Valero’s commitment to Wales and the UK, and it aligns with our strategy to grow the logistics business and reduce secondary costs,” added Gorder.
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