April 24, 2017 [OPIS] - Sprague Resources said that its wholly owned subsidiary, Sprague Operating Resources LLC, has completed the purchase of refined product terminal assets from Carbo Industries and Carbo Realty (Carbo) for about $70 million, plus payments for inventory and other customary items.
OPIS reported Sprague’s New York terminal acquisition deal on March 16.
The consideration paid includes approximately $30 million of Sprague units, $10 million in cash at closing, and the balance in cash, paid ratably over 10 years.
The Carbo terminals are located in Lawrence and Inwood, N.Y., and have a combined gasoline, ethanol and distillate capacity of 157,000 bbl.
“I’m excited to announce that we have closed on our fourth acquisition so far this year. The Carbo transaction strengthens our position in New York and nearly triples our branded gasoline throughput volume,” said David Glendon, Sprague’s CEO.
“Carbo’s ratable cash flow will serve to further lessen the impact of weather on our business. This is expected to be accretive to unitholders and generate approximately $8 to $10 million of adjusted EBITDA annually,” he said.
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 range of materials.
——————————
Access tank storage data on tank terminals worldwide and help your company grow locally or internationally. Learn more.
