PBF Logistics Acquires East Coast Storage Assets for $100 Million

PBF Logistics LP, October 2, 2018

PBF Logistics LP (the "Partnership" or "PBF Logistics") recently announced the completion of the previously announced acquisition of CPI Operations LLC. The assets acquired include a storage facility and other idled assets located on the Delaware River near Paulsboro, New Jersey (the "East Coast Storage Assets"). The total consideration of $107.0 million includes an initial payment at closing of $75.0 million, plus working capital, with the balance being payable one year after closing.

Commenting on the acquisition, Matt Lucey, PBF Logistics Executive Vice President, said, "The ongoing execution of our strategic plan continues to deliver meaningful accretive growth for the Partnership. The acquisition of the East Coast Storage Assets also strategically positions the Partnership for the upcoming International Maritime Organization's low-sulfur fuel specification change in 2020 by adding significant marine-accessible storage assets to our portfolio.  The marine facilities are capable of handling a range of material from finished petroleum products and residual fuel oils to heavy, high-sulfur refinery feedstocks and increase synergy opportunities with our sponsor, PBF Energy." Mr. Lucey continued, "We welcome the Crown Point employees to the PBF Logistics' family and look forward to driving further accretive growth for the Partnership.

The East Coast Storage Assets include a storage facility with approximately four million barrels of multi-use storage capacity, of which over 50 percent is heated storage, an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and other assets.  With close proximity to the Paulsboro refinery, the assets are expected to provide synergy opportunities with the Partnership's sponsor, PBF Energy. The Partnership expects to invest approximately $8.5 million over the next two years in projects to enhance facility capabilities and expects to achieve run-rate earnings before interest, taxes, depreciation and amortization ("EBITDA") of $15.5 million at the end of 2020. 

PBF Logistics LP   

PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.

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