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FRANKLIN, Tenn. – Delek US Holdings Inc. agreed to pay $54.4 million for all the refining and marketing assets of Abilene, Texas-based Pride Companies L.P. and affiliates.
Delek's acquisition, which will close within 60 days, will expand its wholesale distribution of petroleum products to West Texas, as well as bulk up its refinery operations in Tyler, Texas.
The purchase will be funded from its cash and cash equivalents, which include the net proceeds from when the company went public in May.
Assets include two refined petroleum product terminals, seven pipelines that total 114 miles between the terminals, refinery equipment for its Tyler, Texas refinery and a capacity of more than 1 million barrels in storage tanks. The two terminals are located in Abilene and San Angelo, Texas.
Delek will also acquire Pride's marketing and distribution assets, which total 21,000 barrels per day of refined products between the two terminals and other terminals in Texas, including an Aledo, Texas-based terminal.
In addition, Delek acquires the rights of Pride's supply contracts, totaling nearly 27,350 barrels per day.
Delek said in a written statement that it plans to continue evaluating refinery acquisitions and retail fuel outlets or c-stores in nearby markets.