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Sprague Resources to acquire two refined product terminals on Long Island

Sprague Resources
Acquisition   Sprague will pay $70 million

Sprague Resources announced that its operating subsidiary, Sprague Operating Resources, wil buy the Lawrence and Inwood, NY refined product terminal assets of Carbo Industries and Carbo Realty.

Sprague will pay total consideration of approximately $70 million, plus payments for inventory and other customary items.

The consideration is comprised of approximately $30 million of SRLP units to be issued at closing, $10 million in cash paid at closing and the balance in cash, paid ratably over ten years.

The Carbo terminals are located in Inwood and Lawrence, NY, with a combined gasoline, ethanol and distillate storage capacity of 157,000 barrels. The terminals are supplied primarily by pipeline, and also have the ability to accept product deliveries by barge and truck.

Conveniently located next to the region’s major transportation networks, Carbo provides the storage, blending and additive injection capabilities to serve major branded gasoline marketers as well as unbranded gasoline/distillate marketers focused on the New York City and Long Island markets.

This is in addition to functioning as a key pillar of Sprague’s extensive service to New York’s governmental/municipal transportation fuel users and heating oil retailers.

The Carbo transaction is expected to be accretive to distributable cash flow and generate approximately $8 to $10 million of adjusted EBITDA annually.


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