18 June 2013 00:00 [Source: ICIS news]
HOUSTON (ICIS)--Tesoro has reached an agreement to sell all of its Hawaii-based interests to a subsidiary of Par Petroleum in a deal valued at $340m-$390m (€255m-293m), Tesoro announced on Monday.
Houston-based Par Petroleum plans to operate the assets it is purchasing as an integrated refining, logistics and retail system, Tesoro said in a news release.
Total cost of the transaction, which Tesoro thinks will be complete in Q3 2013, includes $75m for the Hawaii operations, $225m-275m for the market value of net working capital and a $40m earn-out arrangement payable over three years based on consolidated gross margins, Tesoro said.
"We are pleased to have reached this positive outcome for the company," said Tesoro CEO Greg Goff. "While the
($1 = €0.75)
Additional reporting by Tracy Dang
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