Global Partners has announced the successful closing of an acquisition of 25 liquid energy terminals from Motiva Enterprises. The company noted that the transaction is underpinned by a 25-year take-or-pay throughput agreement with Motiva, the anchor tenant at the terminals, that includes minimum annual revenue commitments.
“This acquisition nearly doubles our operating footprint, giving Global a significant position from Maine to Florida and into the Gulf Coast,” said Eric Slifka, the Partnership’s president and CEO. “The addition of these terminals supports the growth of our integrated supply, storage and retail network in rapidly growing areas of the country — Florida, Georgia, Texas and the Carolinas — providing customers with gasoline, diesel and other liquid fuels essential to their daily lives.”
With the newly acquired locations, Global now owns or leases 49 liquid energy terminals in the U.S., totaling approximately 18.3 million barrels in shell capacity. The new assets expand access to a critical network of marine loading facilities as well as the Colonial, Plantation, Enterprise, Explorer and Magellan refined product pipelines.
“This purchase marks a significant milestone in Global’s 90-year history and highlights our strategy to acquire and invest in assets where we can leverage our core strengths,” said Slifka. “We look forward to broadening our network for existing customers and serving new customers with our high level personal service and reliability.”
The terminals, purchased for $305.8 million in cash, represent an expected EBITDA multiple below 7.0x in the second year of ownership.
With approximately 1,700 locations primarily in the northeast, Global Partners is one of the region’s largest independent owners, suppliers and operators of fueling stations and convenience markets. Global also owns, controls or has access to one of the largest terminal networks in New England and New York, through which it distributes gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers.
