December 9, 2014 [OPIS] - Sprague Resources LP said on Monday that its operating subsidiary, Sprague Operating Resources LLC, has completed the asset purchase of Castle Oil Corporation and certain of its affiliates, including Castle's Port Morris terminal and its associated wholesale, commercial and retail fuel distribution business for a combined $56 million in cash and SRLP units, plus payments for Castle's inventory as of closing.
Sprague also raised its full year 2014 adjusted EBITDA guidance to between $80 and $90 million, which includes expected contributions from both Metromedia Energy and Castle Oil acquisitions.
Castle’s Port Morris terminal is the largest deepwater petroleum products terminal in New York City, with a total storage capacity of 907,000 bbl, handling distillates, residual fuel, asphalt and biodiesel.
The acquisition increases Sprague’s number of owned and/or controlled petroleum terminals to 18 and its total in-service liquid petroleum product storage capacity to 10.9 million bbl.
Sprague Resources LP is engaged in the purchase, storage, distribution and sale of refined petroleum products and natural gas. The company also provides storage and handling services for a broad range of materials.
