Global Partners expands with acquisition of 25 Motiva terminals
Global Partners LP, a prominent player in the storage, distribution, and retail of liquid energy, has announced a significant expansion through an asset purchase agreement with Motiva Enterprises LLC. This deal involves acquiring 25 liquid energy terminals located along the Atlantic Coast, in the Southeast, and in Texas, U.S.A., for a total of USD305.8 million in cash.
The acquisition, which will see Global Partners’ terminal capacity increase by approximately 85% to 18.3 million barrels, marks a strategic expansion of the company’s operational footprint. These terminals, with a combined shell capacity of 8.4 million barrels, are strategically connected to key refined product pipelines including Colonial, Plantation, Enterprise, Explorer, and Magellan.
Based in the Northeast, Global Partners is a leading independent owner, supplier, and operator of gasoline stations and convenience stores, with approximately 1,700 locations. The company also owns a significant terminal network in New England and New York, distributing various fuels and engaging in petroleum product transportation by rail.
Eric Slifka, president and CEO of Global Partners, emphasised the significance of this acquisition. “This move aligns perfectly with our growth strategy, enhancing our presence in key population centers and leveraging our expertise in terminal operations and wholesale distribution,” said Slifka.
The deal is further strengthened by a 25-year agreement with Motiva, ensuring a stable revenue stream and potential for future growth. Jeff Rinker, president and CEO of Motiva, expressed optimism about the partnership with Global, noting its positive impact on customer service and marketing business growth.
Headquartered in Houston, Texas, Motiva is a key player in refining, distributing, and marketing petroleum products across the Americas. Its Port Arthur Manufacturing Complex is one of North America’s largest refineries.
Subject to customary closing conditions and regulatory approvals, the acquisition is expected to close by the end of the year. Global anticipates the acquisition will positively impact its distributable cash flow per common unit in the first full year, excluding initial transition-related expenses. BofA Securities served as the exclusive financial advisor to Global, with the purchase being funded through borrowings under Global’s revolving credit facility.
