06 November 2013 14:40 [Source: ICIS news]
HOUSTON (ICIS)--NGL Energy Partners has agreed to acquire Gavilon’s energy business for $890m (€659m) in cash, the US-based midstream energy firm said on Wednesday.
Gavilon’s energy business operates integrated crude oil storage, terminal and pipeline assets in ?xml:namespace>
Gavilon is a US-based commodities trading, logistics and services firm. Earlier this year, Japanese trading group Marubeni acquired Gavilon, with the exception of the energy business.
NGL Energy expects to complete the deal next month, it said.
“The transaction is expected to provide NGL with an attractive portfolio of organic growth opportunities, with approximately $65m organic growth capital expenditures associated with the build-out of terminal assets budgeted for remainder of 2013 and 2014,” NGL said.
“In addition, as a significant portion of the assets to be acquired are newly constructed, maintenance capital expenditures are expected to be less than 5% of EBITDA [earnings before interest, tax, depreciation and amortisation] annually for the next several years,” the company added.
($1 = €0.74)
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