Tristar Transport acquires majority stake in HG Storage
Tristar Transport (L.L.C.), an integrated energy logistics group headquartered in the United Arab Emirates (UAE), has signed a sale and purchase agreement with Madison Pacific Trust Limited to acquire a 51% stake in HG Storage International Limited (HGSI), a global portfolio of petroleum products storage and logistics businesses located in strategic trading hubs.
The transaction, valued at USD 215 million, will add in excess of three million cubic meters of fuel storage capacity to the Tristar portfolio and extend the company’s global presence to 29 countries across the globe.
With offices in London and Hong Kong, HG Storage International is a joint venture between HNA and Glencore Group Funding Limited, a wholly owned subsidiary of Glencore Plc. Glencore is one of the world’s largest globally diversified natural resource companies.
Madison Pacific is selling its stake as holder of a security interest given by HNA Innovation Finance Group Co., Limited (HNA) to secure payment under certain notes issued by HNA.
Through this deal, Tristar Transport will acquire a majority holding in a well-diversified portfolio of oil storage, distribution and retail assets owned by HGSI, comprising eight operating assets across four key regions: Europe, the Americas, Middle East and Africa.
Currently Tristar Transport has fuel storage in the Pacific, Central America, North America, Africa and the Middle East.
“It is about growing our revenue streams,” said Eugene Mayne, CEO and founder of Tristar Transport. “Fuel storage is an integral part of our integrated logistics, so it is very much part of our global supply chain offering.”
Following the transaction, Glencore will remain as a key strategic shareholder of HGSI and a joint venture partner to Tristar Transport.
“It is a great opportunity to expand our business,” said Mayne. “And the collaboration with Glencore can only help us to expand not only our geographical footprint but also our client base.”
Completion of the deal is expected in the second quarter of 2022 and is subject to certain regulatory filings and approvals, and stakeholder consents.
Tristar Transport was advised by Acqua Capital (financial advisor) and Freshfields Bruckhaus Deringer (legal advisor). Madison Pacific was advised by PricewaterhouseCoopers (financial advisor) and Stephenson Harwood (legal advisor).
