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FRANKLIN, Tenn. -- Delek US Holdings' subsidiary, Delek Marketing & Supply L.P., has completed the $54.4 million acquisition of Abilene, Texas-based Pride Cos. L.P.
With the purchase, Delek will gain various refinery and petroleum marketing assets, including two refined petroleum product terminals in Texas, seven pipelines totaling 114 miles in length, and storage tanks with a 1 million barrel capacity.
In addition, Delek has scooped up the company's marketing and distribution agreements, which handle 21,000 barrels of refined products per day, and the rights to an existing 27,350 barrels per day in supply contracts.
Delek plans to relocate some of the acquired refinery equipment -- including a facility that processes crude oil and a vacuum unit -- to its refinery in Taylor, Texas.
The acquisition was paid through Delek's debt from two financing agreements and the net proceeds of its initial public offering. The acquired assets have given approximately $14 million to Pride Cos. revenue for the fiscal year ended May 31, 2006.
Delek US Holdings, Inc., a diversified energy company focused on petroleum refining, supply and retail marketing, went public as of May 9, 2006. It offers petroleum products and convenience merchandise through its company-owned stores, operated under the MAPCO Express, MAPCO Mart, East Coast and Discount Food Mart brand names.