Fast-growing Global Partners LP announced on Thursday that it has successfully secured a deal to acquire 25 petroleum terminals along the Atlantic Coast, Southeast, and Texas regions from Motiva Enterprises LLC. With a cash transaction of $305.8 million, this acquisition signifies Global's ambitious expansion in the wholesale market, enabling the company to penetrate various new markets.
Expanding Storage Capacity and Footprint
Situated mostly along popular pipelines such as Colonial, Plantation, Enterprise, Explorer, and Magellan, these newly acquired facilities will grant Global an additional 8.4 million barrels of storage. Once the deal is finalized, Global will possess a total nationwide storage capacity of 18.3 million barrels. This significant boost in storage capabilities solidifies Global's position in the industry.
A Strategic Opportunity for Growth
Global's Chief Executive Officer, Eric Slifka, expressed his enthusiasm for the deal, emphasizing the importance of expanding into regions with growing population centers. Slifka stated that this acquisition presents "an exceptional opportunity to deliver on our strategy and create value" while leveraging Global's expertise in supply management to drive growth in all aspects of the business. The company's vision is to capitalize on this expansion and maximize their potential.
Long-Term Partnership with Motiva
As part of the agreement, Global secured a 25-year throughput agreement with Motiva. This partnership ensures a strong foundation for the facilities, with Motiva acting as the "anchor tenant." The collaboration between these two industry leaders will serve as a solid base for future growth and success.
Future Outlook
The acquisition is projected to be finalized by the end of the year, allowing Global to swiftly integrate and optimize the newly acquired terminals. Meanwhile, Motiva plans to concentrate its efforts on enhancing operations at its Port Arthur, Texas refining complex while strengthening various marketing channels.
