Sunoco LP has entered into an agreement to acquire storage terminals in the Northeast and one terminal in Florida from NuStar Energy LP for $250 million. There are eight terminal locations included in the sale: Andrews AFB in Washington, D.C.; Baltimore, MD; Blue Island, IL; Jacksonville, FL; Linden, NJ; Paulsboro, NJ; Piney Point, MD; and Virginia Beach, VA.
“While these terminals are solid assets with great operations and employees, these facilities are no longer synergistic with NuStar’s core assets, which, in the current competitive climate is critical to their long-term success,” said Brad Barron, president and CEO of NuStar. “Sunoco LP has assets in NY Harbor and in the Southeast U.S. that should provide such synergistic opportunities to ensure the continued success of these facilities and employees.
“This divestiture will allow us to deploy the proceeds to further improve our debt metrics, and we continue to expect to self-fund our spending from our internally generated cash flows, in 2021 and beyond,” Barron added.
Barclays served as exclusive financial adviser to NuStar on the transaction. Sidley Austin LLP represented NuStar.