The company announced today it would acquire refining assets for $54.4 million in cash.Golan Friedenfeld 21 Jun 06 19:16Delek US Holdings Inc. , controlled by Yitzhak Tshuva, is continuing to invest the proceeds of its IPO in the expansion of its business activities. A week after reporting the acquisition of 43 fuel stations and conveniences stores for $46 million, Delek US announced today that it would acquire refining assets from Texas-based Pride Companies L.P. for $54.4 million in cash. The company said the acquisition was expected to add its profit margin and was likely to close within 60 days. The purchased assets include two refined petroleum product terminals in Albiene and San Angelo, Texas, seven pipelines of about 114 miles (182 km) between the terminals which also serve Dyess Air Force Base, and storage tanks with a total shell capacity of more than a million barrels. In addition, Delek also said it acquired Pride’s marketing and distribution business, which markets about 21,000 barrels a day of refined products through its two terminals. Delek will also get Pride’s rights under its existing supply contracts for up to 27,350 barrels a day. The company plans to relocate some of the equipment it acquired to its refinery in Tyler, Texas where it will be used to improve the refinery’s performance. Delek will also have a 10-year option to purchase the real estate on which the refinery equipment is located. Delek US CEO Uzi Yamin said today that the acquisition of the terminals and the marketing of fuel products over and above their immediate contribution to cash flow, would enable the company to substantially expand its distribution operations for fuel products in new niche markets. “We intend to continue evaluating opportunities for acquisitions, including refineries and complementary assets, as well as additional retail fuel and convenience stores,” he said. Published by Globes [online], Israel business news – http://www.globes.co.il – on June 21, 2006
