Strategic initiatives following acquisition expected to simplify corporate structure of Delek US and reduce public company costs

Delek US Holdings Inc. has completed the acquisition of the remaining outstanding units of Alon USA Partners LP in an all-stock transaction.

Under the terms of the merger agreement, the owners of the outstanding common units in Alon Partners that Delek US and its affiliates do not currently own will receive a fixed exchange ratio of 0.49 Delek US shares for each common unit of Alon Partners.

Prior to this transaction, Delek US and its affiliates owned approximately 51.0 million common units of Alon Partners, or approximately 81.6% of the outstanding units. Following closing, Delek US will have approximately 84.1 million shares outstanding.

“We are excited to complete this strategic initiative following the acquisition of Alon USA on July 1, 2017,” said Uzi Yemin, chairman, president and CEO of Delek US stated. “It simplifies the corporate structure of Delek US and should reduce public company costs. This step should move us toward capturing cost of capital synergies as we utilize the balance sheet of Delek US to refinance high cost debt at Alon Partners. Also, it should allow us to efficiently dropdown logistics assets to Delek Logistics Partners in the future. For Alon Partners public unitholders, the transaction gives them ownership in a larger, more diverse organization. I would like to thank the employees of both companies and the members of Alon Partners’ conflicts committee for their efforts during this process.”

Delek is a diversified downstream energy company with assets in petroleum refining, logistics, asphalt, renewable fuels and convenience store retailing.