PBF and its subsidiary Toledo Refining have entered into an agreement to acquire the 170,000 barrel per day Toledo, Ohio refinery and related assets from Sunoco.
PBF, an owner and operator of oil refineries, will acquire the facility for approximately USD200m in cash and will enter into a note with the seller in the amount of USD200m.
In addition to the purchase price, PBF will acquire the hydrocarbon inventory at closing.
In the event that the refinery exceeds certain profitability thresholds there is a participation payment of up to USD125m.
The transaction is expected to close in the first quarter of 2011.
The Toledo facility is a high conversion light/sweet refinery with a Nelson complexity rating of 9.2. Major process units include a fluid catalytic cracking unit, a high pressure hydrocracker, a gasoline hydrotreater, two reformers, an alkylation unit and a UDEX unit. There are approximately five million barrels of crude oil and product storage at the refinery.
Thomas D. O’Malley, PBF’s chairman, says: "The Toledo acquisition provides PBF with growth in a different geographic area. This refinery is well configured to serve its marketplace. The PBF team, many of whom previously worked for Premcor, is very familiar with the mid-Continent marketplace, having managed Premcor’s Lima, Ohio refinery.”
David Foley, senior managing director of Blackstone, says: “Within less than one year, PBF has acquired and executed definitive purchase agreements to acquire three refineries having a total production capacity of approximately 530,000 barrels per day. Blackstone is pleased to invest our private equity capital to build a strong new company that will reinvigorate this critical component of America’s energy infrastructure, providing attractive jobs to our employees and reliably delivering clean fuels to American consumers through management’s focus on safe and efficient operations.”
PBF’s principal owners are The Blackstone Group and First Reserve.
