Company News

Delek U.S. to Acquire Remaining Shares of Alon USA

Both boards have approved transaction

BRENTWOOD, Tenn., and DALLAS --Delek U.S. Holdings Inc. and Alon USA Energy Inc. today announced a definitive agreement under which Delek U.S. will acquire all of the outstanding shares of Alon common stock that Delek U.S. does not already own in an all-stock transaction valued at $464 million.

Delek U.S. currently owns approximately 47% of the outstanding common stock of Alon USA.

The boards of both companies approved the transaction unanimously.

The combined company will have a broad platform consisting of refining, logistics, retail and wholesale marketing, as well as renewables and asphalt operations.

In August 2016, Brentwood, Tenn.-based Delek U.S. entered into a deal to sell 100% equity interest in its network of approximately 350 convenience stores under the Mapco Express, Mapco Mart, East Coast, Fast Food and Fuel, Favorite Markets, Delta Express and Discount Food Mart names to Compania de Petroleos de Chile SA (COPEC) for $535 million.

Dallas-based Alon is the largest 7-Eleven licensee in the United States, operating about 300 convenience stores in Texas and New Mexico.

Delek U.S. is a diversified downstream energy company with assets in petroleum refining and logistics. The refining segment consists of refineries operated in Tyler, Texas, and El Dorado, Ark. Delek U.S. and its affiliates also own approximately 62% (including the 2% general partner interest) of Delek Logistics Partners LP, a growth-oriented master limited partnership (MLP) focused on owning and operating midstream energy infrastructure assets.

Alon USA is an independent refiner and marketer of petroleum products, operating primarily in the south central, southwestern and western regions of the United States. Alon owns 100% of the general partner and 81.6% of the limited partner interests in Alon USA Partners LP, which owns a crude-oil refinery in Big Spring, Texas, and an integrated wholesale marketing business. Also, Alon directly owns a crude-oil refinery in Krotz Springs, La.

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