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.