Inspectioneering
News

Sprague Resources Buys Carbo’s Refined Products Terminals on Long Island

Sprague Resources LP, April 20, 2017

Sprague Resources LP (“Sprague”) recently announced that its wholly owned subsidiary, Sprague Operating Resources LLC, has completed the purchase of refined product terminal assets from Carbo Industries, Inc. and Carbo Realty, L.L.C. (“Carbo”) for total consideration of approximately $70 million, plus payments for inventory and other customary items. The consideration paid includes approximately $30 million of SRLP units, $10 million in cash at closing, and the balance in cash, paid ratably over 10 years. The Carbo terminals are located in Lawrence and Inwood, NY, and have a combined gasoline, ethanol and distillate capacity of 157,000 barrels.

I’m excited to announce that we have closed on our fourth acquisition so far this year. The Carbo transaction strengthens our position in New York and nearly triples our branded gasoline throughput volume,” said David Glendon, Sprague’s President and CEO. “Carbo’s ratable cash flow will serve to further lessen the impact of weather on our business. This is expected to be accretive to unitholders and generate approximately $8 to $10 million of adjusted EBITDA annually.

About Sprague Resources LP

Sprague Resources LP is engaged in the purchase, storage, distribution and sale of refined petroleum products and natural gas. The company also provides storage and handling services for a broad range of materials. More information concerning Sprague can be found at www.spragueenergy.com.

STAY INFORMED WITH THE LATEST INDUSTRY NEWS

Join 10,000+ subscribers and receive weekly updates on industry news, events, and content straight to your inbox. Enter your information below:


Comments and Discussion

There are no comments yet.

Add a Comment

Please log in or register to participate in comments and discussions.


Inspectioneering Journal

Explore over 20 years of articles written by our team of subject matter experts.

Company Directory

Find relevant products, services, and technologies.

Job Postings

Discover job opportunities that match your skillset.

Case Studies

Learn from the experience of others in the industry.

Event Calendar

Find upcoming conferences, training sessions, online events, and more.

Industry News

Stay up-to-date with the latest inspection and asset integrity management news.

Blog

Read short articles and insights authored by industry experts.

Asset Intelligence Reports

Download brief primers on various asset integrity management topics.

Videos

Watch educational and informative videos directly related to your profession.

Expert Interviews

Inspectioneering's archive of interviews with industry subject matter experts.