Partnership to Add 950,000 Barrels of Storage Capacity in Southeastern New York
WALTHAM, Mass.--(BUSINESS WIRE)--Aug. 6, 2009--
Global Partners LP (NYSE:GLP), a leading wholesale supplier of refined
petroleum products in the Northeast, today announced the signing of a
definitive agreement to acquire three terminal facilities from Warex
Terminals Corporation, Inc. for $47.5 million.
The terminals, located in Newburgh, New York, have a combined gasoline
and distillate storage capacity of 950,000 barrels. Under the terms of
the agreement, Global and Warex plan to enter into a long-term
throughput contract that allows Warex to use the terminals to service
its existing business and conduct future wholesale activities. The
acquisition is scheduled to close in the fourth quarter of 2009, subject
to the receipt of certain regulatory approvals and various other
customary closing conditions. Although other options could be
considered, Global Partners expects to finance the acquisition through
bank debt.
“Today’s announcement marks a significant step in our continuing
long-term growth strategy,” said Eric Slifka, president and chief
executive officer of Global Partners. “These terminals complement our
footprint in southeastern New York, and further build our strategic
presence along the Hudson River and in the Central Valley. As with the
other terminals we have acquired, we expect this transaction to be
accretive to unitholders in the first 12 months of operation with
improving returns over time as the business potential of these assets is
further realized.”
Warex Terminals Corporation, Inc. is one of the Northeast's largest
independent distributors of gasoline and distillates. It is a subsidiary
of Warren Equities, Inc., a privately held company based in Providence,
Rhode Island.
About Global Partners LP
Global
Partners LP, a publicly traded master limited partnership based in
Waltham, Massachusetts, owns, controls and has access to one of the
largest terminal
networks of refined
petroleum products in the Northeast. The Partnership is one of the
largest wholesale distributors of gasoline,
distillates (such as home
heating oil, diesel
and kerosene) and residual
oil to wholesalers, retailers and commercial customers in the
region. Global Partners LP, a FORTUNE 500® company, trades on
the New York Stock Exchange under the ticker symbol “GLP.” For
additional information, please visit www.globalp.com.
Forward-looking Statements
This news release contains certain “forward-looking statements” within
the meaning of the federal securities laws. These forward-looking
statements are identified as any statements that do not relate strictly
to historical or current facts and can generally be identified by the
use of forward-looking terminology including “will,” “may,” “believe,”
“expect,” “anticipate,” “estimate,” “continue” or other similar words.
Such statements may discuss business prospects, goals, new developments
and future expectations or contain projections of results of operations,
financial condition and Global Partners LP’s ability to make
distributions to unitholders. These statements are not guarantees of
performance. Although Global Partners LP believes these forward-looking
statements are based on reasonable assumptions, statements made
regarding future results are subject to a number of assumptions,
uncertainties and risks, many of which are beyond the control of Global
Partners LP, which may cause actual results to be materially different
from the forward-looking statements contained in this news release. For
specific risks and uncertainties that could cause actual results to
differ materially from forward-looking statements, please refer to
Global Partners LP’s Annual Report on Form 10-K for the year ended
December 31, 2008 and subsequent filings the Partnership makes with the
Securities and Exchange Commission. All forward-looking statements
included in this news release and all subsequent written or oral
forward-looking statements attributable to Global Partners LP or persons
acting on its behalf are expressly qualified in their entirety by these
cautionary statements. The forward-looking statements speak only as of
the date made, and Global Partners LP undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Source: Global Partners LP
Global Partners LP
Thomas J. Hollister, 781-894-8800
Chief
Operating Officer and
Chief Financial Officer
or
Edward
J. Faneuil, 781-894-8800
Executive Vice President,
General
Counsel and Secretary