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Arc Logistics, GE JV Buys Joliet Bulk, Barge and Rail for USD 216m.


15 May 2015 - US-based energy logistics company Arc Logistics Partners LP (NYSE: ARCX) has completed its acquisition of all of the membership interests of Joliet Bulk, Barge and Rail LLC from CenterPoint Properties Trust through a joint venture arrangement with General Electric Company (NYSE: GE) GE Energy Financial Services unit, the company said

The purchase price was USD 216m.

JBBR's principal assets consist of a crude oil unloading terminal and a four-mile crude oil pipeline.

The partnership's joint venture company will also make certain throughput based earn-out payments to CenterPoint, which earn-out shall terminate upon the payment, in the aggregate, of USD 27m.

Arc Logistics said that the acquisition follows confirmation from the Joliet Terminal's major customer that the terminal has become commercially operable.

The Joliet Terminal is capable of unloading approximately 85,000 barrels of crude oil per day, has approximately 300,000 barrels of onsite storage, and connects to a common carrier crude oil pipeline through the terminal's 4-mile pipeline.

Arc Logistics is the manager of the Joliet Terminal and owns a 60% interest in the JBBR joint venture company.

An affiliate of GE Energy Financial Services owns the remaining 40%.

Arc Logistics financed its approximate USD 130m portion of the purchase price with net proceeds from the sale of common units in a private placement and from borrowings under its revolving credit facility.

The company is a fee-based, growth-oriented limited partnership that owns, operates, develops and acquires a portfolio of complementary energy logistics assets.

Arc Logistics is principally engaged in the terminalling, storage, throughput and transloading of crude oil and petroleum products.

Country: USA

Sector: Petroleum/Natural Gas/Coal

Target: Joliet Bulk, Barge and Rail LLC

Buyer: Arc Logistics Partners/GE JV

Vendor: CenterPoint Properties Trust

Deal size in USD: 216m

Type: Corporate Acquisition

Financing: Cash

Status: Closed

Buyer advisor: , ,


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Publication:M & A Navigator
Date:May 15, 2015
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