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Sprague Operating Resources buys assets of Castle Oil

Staff writer ▼ | November 6, 2014
Sprague Resources LP announced that Sprague Operating Resources LLC, has signed a definitive agreement to purchase the assets of Castle Oil Corporation and certain of its affiliates.
Castle Oil
Acquisition   The transaction to be immediately accretive
This includes Castle's Port Morris terminal and its associated wholesale, commercial, and retail fuel distribution business for a combined $56 million in cash and SRLP units, plus payments for Castle's inventory as of closing.

Castle's Port Morris terminal is the largest deepwater petroleum products terminal in New York City, with a total storage capacity of 907,000 barrels, handling distillates, residual fuel, asphalt and biodiesel.

The terminal includes an interconnected tank system enabling on-site blending and is conveniently located on the East River with deepwater marine access on multiple ship and barge berths. The acquisition is subject to customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act, and is expected to close before the end of the year.

"Castle's strategically located Port Morris terminal provides an outstanding platform for Sprague to strengthen and expand our service to customers in New York City and the surrounding metropolitan area," said David Glendon, President and CEO of Sprague.

"The Port Morris facility will increase Sprague's total in-service storage capacity to more than 10.9 million barrels across eighteen terminals, and solidify our status as one ofNew York's premier refined products terminal operators and marketers. Castle's history of superior customer service for more than eight decades fits well with our own 144-year focus on serving customers with dependable supply and innovative product and service offerings, and we welcome the addition of Castle's dedicated employees and strong customer relationships to Sprague.

"The Castle transaction is expected to be immediately accretive for our unitholders and will provide a significant addition to our core asset base to help execute our growth strategy," concluded Mr. Glendon.