TEL AVIV, Israel -- Delek Group announced that its subsidiary Delek US Holdings Inc. has completed, through its wholly owned subsidiary, Delek Marketing & Supply LP, the acquisition of various refinery assets and petroleum marketing assets from Pride Cos. LP and its affiliates, based in Abilene, Texas.
The company paid a cash purchase of $54.4 million (excluding the inventory), through a combination of debt from two new financing agreements and the net proceeds of its recent initial public offering (IPO). The acquired assets have contributed around $14 [image-nocss] million to the Pride's group revenue (before general and administrative expenses) in the fiscal year that ended in May 31, 2006.
As reported in CSP Daily News in mid-June, the purchased assets include two refined petroleum product terminals located in Abilene and San Angelo, Texas; seven pipelines of approximately 114 miles in length, primarily between the terminals and also serving Dyess Air Force Base; and storage tanks with a In addition Delek US purchased Pride's marketing and distribution business, which, along with other exchanges, markets approximately 21,000 barrels per day (bpd) of refined products through its two owned terminals, the Aledo, Texas, terminal, and other terminals in Texas.
Delek Marketing & Supply will obtain Pride's rights under existing supply contracts for up to 27,350 bpd.
The acquired assets include various refineries that are based next to the terminal in Abilene. Delek US plans in the future to relocate part of the refinery equipment, which includes a facility for processing crude oil, a vacuum unit and additional equipment to the refinery owned by the company in Taylor Texas, in order to improve the facility and its performance.
Delek Group owns 77.4% of Delek US Holdings.
The Delek Group, Tel Aviv, is one of the most prominent and dynamic investment groups in Israel. The Delek Group is diversified into the following three major subsidiaries: Delek Petroleum, with its two subsidiaries: Delek Israel, a gasoline and lubricants distributor in Israel and Delek USA, which operates U.S. gas stations and convenience stores and an oil refinery; Delek Investments & Properties, a holding company with subsidiaries in the energy, infrastructure, automotive, finance and media sectors; and Delek Real Estate, through its subsidiaries Dankner and Delek Belron Investments, owns and manages prime global real-estate investments.
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