Global Partners to buy several liquid energy terminals from Motiva Enterprises for $306m
Global Partners LP, an integrated storage, distribution, and retail liquid energy company, has entered into a landmark deal with Motiva Enterprises LLC. The agreement involves the purchase of 25 liquid energy terminals across the Atlantic Coast, the Southeast, and Texas for $305.8 million in cash.
Strategic Expansion in Liquid Energy Terminals
This acquisition marks a significant expansion for Global Partners, who currently own or lease 24 terminals. The addition of these strategically located assets, with a total shell capacity of 8.4 million barrels, will boost Global’s terminal capacity and geographic reach, connecting them to major refined product pipelines.
Enhancing Storage Capacity and Geographic Reach
Upon completion, this deal will increase Global’s storage capacity by approximately 85 percent to 18.3 million barrels. Eric Slifka, President and CEO of Global, highlighted the acquisition’s alignment with the company’s strategic growth, enhancing their presence in areas with increasing population centers.
Global Partners to acquire several liquid energy terminals from Motiva Enterprises for $306m
Long-term Benefits and Growth Prospects
The acquisition includes a 25-year agreement with Motiva, ensuring long-term revenue commitments. This strategic move is expected to provide growth opportunities for Global Partners in various aspects of its business.
Motiva’s Focus on Core Manufacturing and Marketing Channels
Jeff Rinker, President and CEO of Motiva, expressed enthusiasm for the partnership, noting that the divestiture aligns with Motiva’s focus on its Port Arthur Manufacturing Complex and marketing growth.
Closing Conditions and Financial Aspects of the Deal
Subject to regulatory approvals and customary closing conditions, the transaction is expected to close by year-end. Global anticipates the acquisition to be accretive to its distributable cash flow per common unit in the first full year of operations.
About Global Partners LP:
Global Partners LP, a leading energy storage and distribution company, is set to enhance its infrastructure and service capabilities with this significant acquisition.