November 5, 2014 [OPIS] - Sprague is purchasing yet another Northeastern fuel terminal to add to its East Coast holdings. The company announced today that an operating subsidiary, Sprague Operating Resources, will purchase the assets of Castle Oil and affiliates in a deal that will include that company's Port Morris terminal in Bronx, N.Y.
The deal is valued at $56 million in cash and includes Castle’s associated wholesale, commercial and retail fuel distribution businesses. Payment for inventory at closing is separate.
The Port Morris terminal is the largest deepwater petroleum products terminal in New York City, with total storage capacity of 907,000 bbl. It handles distillates, residual fuel, asphalt and biodiesel and includes onsite blending. Sprague anticipates that it will close on the deal before year’s end.
“Castle’s strategically located Port Morris terminal provides an outstanding platform for Sprague to strengthen and expand our service to customers in New York City and the surrounding metropolitan area,” said David Glendon, president and CEO of Sprague. “The Port Morris facility will increase Sprague’s total in-service storage capacity to more than 10.9 million barrels across 18 terminals, and solidify our status as one of New York’s premier refined products terminal operators and marketers.”
