Boston, MA 06/20/2014 (wallstreetpr) – The effective partnership leader in operation, development of crude oil and petroleum products, Valero Energy Partners LP (NYSE:VLP) has recently announced its acquisition plans. With an aim to expand its business and market share, the company has provided green signal to the acquisition plans that are planned to complete by beginning of July. The company has provided a list of assets that the company is scheduled to acquire in the coming days. VLP has decided to move forward towards acquisition with an aim to achieve its growth plans and goals.
Acquisition of First Asset
VLP recently on June 17, 2014 announced that it has given confirmation to the plans of acquisition. The acquisition will take place from some subsidiaries of Valero Energy Corporation of the McKee Crude System, Three Rivers Crude System and Wynnewood Products System. The company decided the same for a total consideration amounting to $154 million. The transaction is expected to be wrapped up by the beginning of July. The company has also revealed that the project will be funded by the Partnership’s cash on hand.
The Chairman and CEO of Valero Energy Partners LP (NYSE:VLP), Joe Gorder remarked that the acquisition plan is consistent with the previously announced plans of the company. In a recently published list, the company showcased the main assets to be acquired by the company. The company is scheduled to acquire McKee Crude Systems that has approximately 72K barrels/day of throughput capacity and around 200 miles of pipelines. The Three Rivers Crude amongst other things has 11 crude oil truck unloading sites and The Wynnewood Products System has extensive petroleum pipeline system.
The agreements will contain the details about minimum throughput volume commitments. Further, Valero Energy Partners LP (NYSE:VLP) revealed that the company confirmed that the potential acquired assets are expected to contribute around $15.4 million of EBITDA in its first full year of operation.
