Valero Energy Partners, LP announced late last week that an acquisition to acquire subsidiary businesses Valero Partners Houston, LLC and Valero Partners Louisiana, LLC. The transaction was valued at roughly $671 million.
The deal closed on Sunday, March 1. Valero Energy stated that the Partnership will receive the outstanding membership interests of both lesser companies. Additionally, numerous assets and operations come with both businesses.
The Valero Partners Houston branch operates a crude oil, intermediates and refined petroleum products terminal located on the Houston ship channel that supports Valero’s Houston refinery. The assets consist of storage tanks with 3.6 million barrels of storage capacity.
Valero Partners Louisiana, LLC operates a crude oil, intermediates, and refined petroleum products terminal located on the Mississippi River in Norco, Louisiana, that supports Valero’s St. Charles refinery. The assets consist of storage tanks with 10 million barrels of storage capacity.
“This acquisition is our largest yet and is consistent with our previously communicated accelerated growth strategy,” said Joe Gorder, Chairman, President, and Chief Executive Officer in a recent press release.
The businesses acquired by the limited partnership of Valero Energy Corp are expected to add $75 million to earnings before interest, taxes, depreciation and amortization in the first year of operation. Once the deal is closed, Valero Energy Partners, LP plans to enter into 10-year terminating agreements with subsidiaries of Valero.
Valero Energy Partners, LP is headquartered in San Antonio. The company is a fee-based, growth-oriented, traditional master limited partnership formed by Valero Energy Corporation to own, operate, develop, and acquire crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets.