TransMontaigne Partners L.P. announced that one of its wholly-owned subsidiaries has entered into an agreement to acquire the Martinez Terminal and Richmond Terminal from an affiliate of Plains All American Pipeline, L.P., for a total purchase price of $275 MM.
The acquisition expands the Partnership’s storage and terminaling footprint into the San Francisco Bay Area refining complex. The acquisition is expected to be financed through the proceeds of a common unit offering and cash available from other sources. The closing of the acquisition is expected to occur on or about Jan. 1, 2018, subject to customary closing conditions.
The West Coast Facilities include two waterborne refined product and crude oil terminals with a total of 64 storage tanks with approximately 5.4 MMbbl of storage capacity. The facilities have extensive connectivity to domestic and international refined product and crude oil markets through significant marine, pipeline, truck and rail capabilities.
The facilities are supported by multi-year, fee-based agreements with contract terms of up to 5 yr. The purchase price reflects a less than ten times multiple of the Partnership’s estimate of the 2018 EBITDA attributable to the West Coast Facilities based on current customer contracts and historical and anticipated activity levels, revenues and operating costs. The Partnership cautions that it cannot provide any assurance that the West Coast Facilities will achieve this anticipated level of EBITDA.
