Boston, MA 09/26/2014 (wallstreetpr) – According to reports, Western Refining Logistics LP (NYSE:WNRL) has decided to acquire Western Refining, Inc. (NYSE:WNR). The news was revealed by both the companies in a joint statement recently. As per the reports, WNRL will be paying total $360 million to WNR.
Insights of the deal:
Western Refining Logistics LP (NYSE:WNRL) has signed an agreement with Western Refining, Inc.(NYSE:WNR), according to which the former will acquire southwest wholesale business of WNR for a huge sum of $360 million. The amount will be paid to WNR partly in cash and partly in common stock shares of the company. The management of both the companies announced that if everything went fine, then this deal would close on October 15, 2014. Date of closing is subjected to shareholders’ approval and regulatory clearance.
Southwest wholesale business unit of WNR is considered as an ideal platform to expand business in the nearby area. A few important points about this unit are as follows-
- This unit makes fuel sales of close to 79,000 barrels per day to various unmanned cardlock locations of the company and a lot of third party customers.
- It is one of the largest and most diversified a lubricant products distribution businesses in that area, which means that WNRL will get a good exposure to lubricant market with the help of this business unit.
- It allows anyone to expand the operation in Permian and San Juan basins, which are two most rapidly growing crude oil trucking platforms of the country.
The management of Western Refining, Inc.(NYSE:WNR) and Western Refining Logistics LP (NYSE:WNRL) say that as soon as the deal gets closed, both the companies will enter into a crude oil trucking and fuel supply agreement for next ten years. The details about minimum volume and grace periods will be disclosed on a later date. WNRL expects that total EBITDA generated from southeast wholesale business unit in 2015 will cross $40 million mark.
