Vopak to sell Savannah terminal to BWC for US106 million
Royal Vopak, based in Rotterdam, the Netherlands, has entered into a binding agreement to sell its terminal in Savannah, Georgia, U.S.A., to BWC Terminal Holdings LLC, which is headquartered in Houston, Texas, U.S.A.
BWC is a premier provider of bulk liquid storage and logistics services to manufacturers, refiners, producers, and distributors of bulk liquids in North America. The company consists of 21 sites with 18.5 million barrels of storage capacity. The BWC Terminals facilities are equipped to store a wide range of renewable fuels, agriculture, specialty chemicals, food grade, and petroleum-based products.
The Savannah terminal is located in the Port of Savannah, the fourth largest port in the United States. It consists of approximately 1.6 million barrels of storage capacity across 56 tanks with direct tie-ins to rail, trucking, pipeline, and marine infrastructure. This capacity is mainly used for the storage of vegetable oils, asphalt, and specialty chemicals.
The cash and debt-free enterprise value of the transaction amounts to USD106 million. The transaction, subject to certain post-closing adjustments and U.S. capital gains tax, will result in expected net cash proceeds of approximately USD80 million. Vopak will report an exceptional gain in the first half of 2023. The impact of this divestment is not material for Vopak’s 2023 outlook.
Although within Vopak we will surely miss our colleagues at the Savannah terminal, we are convinced that our customers and colleagues will be well served by becoming part of BWC Terminals’ network in North America. We would like to thank our Savannah colleagues and customers for their trust and contribution to Vopak and will work together towards a closing and smooth transfer to BWC Terminals,” said Division President Vopak Americas Maria Ciliberti.
“The divestment of the Savannah chemical terminal is in line with our strategic goals to improve the financial performance of the portfolio, grow Vopak’s footprint in gas and industrial terminals and accelerate towards new energies. We remain committed to actively manage our portfolio towards infrastructure investments that support the long-term cash flow profile and return ambitions of the company,” said Michiel Gilsing, chief financial officer of Vopak.
Vopak aims to improve the financial and sustainability performance of its portfolio. In addition, the world’s leading independent tank storage company aims to grow in industrial and gas infrastructure by investing EUR1 billion (USD1.07 billion) by 2030 and to accelerate in infrastructure for new energies by investing another EUR1 billion (USD1.07 billion) over the same period.
The completion of this divestment is subject to certain customary closing conditions and is expected to be finalized in the second quarter of 2023.