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SAN ANTONIO -- After months of industry speculation, Valero Energy Corp. has completed the sale of its Krotz Springs, La., refinery to Alon USA Energy Inc.
The deal, official as of July 1, was in the works since the beginning of this year after the company announced it would explore strategic alternatives for the Krotz Springs refinery.
According to CNNMoney.com, JPMorgan served as financial advisor to Valero which received $333 million plus $143 million as part of an initial payment toward working capital, which will be settled with a final adjustment payment within 90 days of closing. As part of the agreement, Valero received an earn-out provision, which the company has hedged to lock-in a value of approximately $200 million.