01.28.2013
Columbia Pacific Bio-Refinery To Be Sold To Global Partners LP
Click here to read the full press release: GLP to Acquire Cascade Kelly Holdings
In response to the pending sale, JH Kelly LLC President Mason Evans announced: “We are pleased to pass the stewardship of the Columbia Pacific Bio-Refinery to a premier company like Global. They are an experienced operator of high integrity, and they will be a great addition to this region. During our tenure at Port Westward, we built a high quality facility, assembled a world-class team, provided significant family-wage jobs, and made extensive and strategic infrastructure investments to improve the viability of the site. Thank you to those who supported us in this effort. The business is in very good hands and has a bright future.”’
GLOBAL PARTNERS LP
Contacts:
Thomas J. Hollister Edward J. Faneuil
Chief Operating Officer and Executive Vice President,
Chief Financial Officer General Counsel and Secretary
Global Partners LP Global Partners LP
(781) 894-8800 (781) 894-8800
Global Partners Signs Agreement to Acquire West Coast Crude Oil and Ethanol Facility
Transaction Extends Partnership’s Virtual Pipeline and Advantaged Logistics;
$95 Million Acquisition Scheduled to Close in Q1 2013
Waltham, Mass., January 28, 2013 – Global Partners LP (NYSE: GLP) today announced that it has signed an agreement to acquire 100 percent of the membership interests in a West Coast crude oil and ethanol facility near Portland, Oregon from Cascade Kelly Holdings LLC. The total purchase price is expected to be approximately $95 million. The transaction includes a rail transloading facility serviced by the BNSF Railway, 200,000 barrels of storage capacity, a deepwater marine terminal, a 1,200-foot dock and the largest ethanol plant on the West Coast. Situated along the Columbia River in Clatskanie, Oregon, the site is located on land leased under a long-term agreement from the Port of St. Helens. In November 2012, the facility began transloading unit trains of crude oil.
“This transaction capitalizes on our advantaged logistics and enables Global to supply cost-competitive crude and ethanol to refiners and customers on the West Coast,” said Eric Slifka,Global’s president and chief executive officer. “From our origination hub in the Bakken region of North Dakota, we will now have destination assets on both coasts. The Oregon site is linked via
BNSF to the Basin Transload facility in Beulah, North Dakota while our Albany, NY terminal is connected via single line haul on Canadian Pacific to the Basin Transload location in Columbus, North Dakota. This facility also creates a link between the Western Canadian Sedimentary Basin and Pacific refiners. With the pending closing of our Basin Transload acquisition this quarter, these
new assets increase our capability to transport crude from the U.S. and Canadian mid-continent and extend our virtual pipeline to the West.”
“Because certain regions of the West Coast energy market have limited pipeline access, the dynamics of sourcing and logistics for PADD V refiners and customers are comparable to those we see in the Northeast,” Slifka said. “As we have demonstrated to those customers, we believe that we can apply our rail and marine expertise to meet the demand for crude and ethanol on the West
Coast. Given the 3.3 million barrels a day of crude refining capacity in PADD V, this facility represents an opportunity for Global to drive additional product volumes and enhance margins.”
Global’s purchase of Cascade Kelly Holdings, which has been approved by the Board of Directors of the Partnership’s general partner, Global GP LLC, is subject to customary regulatory approvals and various other customary commercial closing conditions. The purchase is expected to be completed by the end of the current quarter and is expected to be accretive to unit holders in its first full year of operation.