International-Matex Tank Terminals Enters Agreement to Acquire Epic Midstream for $171.5 Million
Published: September 13, 2017 |
International-Matex Tank Terminals (IMTT) has entered into an agreement to acquire Epic Midstream (Epic) from affiliates of White Deer Energy and Blue Water Energy. The transaction values Epic at $171.5 million, not including working capital adjustments, and is expected to close in the third quarter of 2017, subject to customary regulatory approvals, and satisfaction of other conditions precedent.
The addition of Epic adds an exciting new dimension to IMTT. Together with a greatly expanded product line.— jet fuel.— Epic provides us with a presence in the strategically important Port of Savannah, some exciting new customer relationships and an energetic team assembled by terminal industry veteran David Vattimo,” said Richard Courtney, chief executive officer of IMTT.
“IMTT and Epic are a great fit, commercially and culturally. We have put a tremendous amount of effort into improving and leasing the Epic assets over the past several years - we think both the team and the tanks will prove to be a great addition to IMTT,” said David Vattimo.
Epic operates a portfolio of seven terminals in the U.S. Southeast and Southwest, with principal operations in Savannah, Georgia. The facilities comprise approximately 3.1 million barrels of refined petroleum, asphalt, biofuels and chemical storage capacity. The business is supported by take-or-pay contracts similar to those at IMTT.
Epic terminals will continue to store and handle jet fuel at a number of locations for customers including an affiliate of the U.S. Department of Defense that has been an Epic customer for more than 20 years.
The acquisition is being funded by IMTT parent, Macquarie Infrastructure Corporation, with the issuance of $125.0 million in new MIC shares to the sellers and $46.5 million in cash including with drawings on IMTT’s revolving credit facility.
International-Matex Tank Terminals (IMTT) is an industry leader in the handling and storage of bulk liquid products through its ownership and operation of ten terminals in the U.S. and two additional facilities in Canada. The terminals handle petroleum (primarily refined), chemical, and vegetable and animal oil products for customers including refiners, commodities traders and specialty chemical manufacturers. Customers retain ownership of the bulk liquids, as well as responsibility for insuring those products. IMTT is the lessor of its more than 45 million barrels of storage capacity.
To stop by IMTT’s website, CLICK HERE
About Macquarie Infrastructure Corporation
MIC owns and operates a diversified group of businesses providing basic services to customers in the United States. Its businesses consist of a bulk liquid terminals business, International-Matex Tank Terminals, an airport services business, Atlantic Aviation, entities comprising an energy services, production and distribution segment, MIC Hawaii, and entities comprising a Contracted Power segment.
To stop by MIC’s website, CLICK HERE
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