SAN ANTONIO -- Valero Energy Corp. said that it has agreed to sell, subject to regulatory approvals, its 165,000 barrel-per-day refinery in Lima, Ohio, to Husky Energy Inc. for $1.9 billion, plus net working capital estimated at $200 million to be valued at closing.
The boards of both companies have approved the transaction and the sale is expected to close during the second quarter.
We're pleased to have such a high-quality buyer for this facility, said Bill Klesse, Valero's chairman and CEO. This is an excellent outcome for [image-nocss] Valero, for the Lima employees and their community. They are going to have a great new operator of this facility for the long term. Husky is a leading Canadian energy producer who will now have the opportunity to expand their system and create a home for their growing supply of heavy Canadian crude oil. Introduction of new heavy crude supplies into the U.S. market from Canada should make a significant contribution to long-term energy supply security, particularly for the Midwest region.
Valero had announced in February that as part of its strategy of improving its returns by focusing on operations and financial performance, it was exploring strategic alternatives for the Lima refinery, which it had acquired through its 2005 purchase of Premcor Inc.
As part of our balanced approach to investing cash to generate higher returns for our shareholders, we anticipate using proceeds from the sale to purchase more of our shares later in the year, said Klesse.
San Antonio-based Valero currently owns and operates 18 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.3 million bpd, making it the largest refiner in North America. Valero is also one of the nation's largest retail operators with more than 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under brand names including Valero, Diamond Shamrock, Shamrock, Ultramar and Beacon.
Click here for details about the refinery.
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