Americas News
Aegean to Buy Hess' US East Coast Bunkering Business for $30 million
Aegean Marine Petroleum Network Inc. [NYSE: ANW] (Aegean) today announced it is expanding its physical supply to the U.S. East Coast, and has agreed to buy the bunkering business of Hess Corporation [NYSE:HES] (Hess) for $30 million plus the cost of inventory.
Completion is expected before the end of 2013 and is subject to the usual closing conditions.
Hess' bunkering business covers the ports of New York, Philadelphia, Baltimore, Norfolk, and Charleston, and the deal includes approximately 250,000 cubic meters of leased tank storage.
Aegean said that over the last three years sales from Hess' operations averaged 1.8 million metric tons per year.
"We are pleased to further diversify our geographic mix by capitalizing on this attractive, accretive opportunity for U.S. East Coast expansion. Hess Corporation has built a tremendous network and we are excited to apply our expertise and capabilities to these established operations," commented Aegean President E. Nikolas Tavlarios.
"This transaction will require minimal start-up costs and is fully-aligned with our objective of strategically expanding our global presence while leveraging our existing infrastructure to increase revenues.
"We are confident that these operations will strengthen our business portfolio, bolster our customer reach, and create meaningful value for our shareholders."
Aegean said the acquisition not only marks its entry into supplying customers in the U.S. but would also increase its exposure to U.S. clients worldwide "including leading cruise lines," and Aegean Chief Financial Officer Spyros Gianniotis indicated the supplier was eyeing further expansion.
"We are capitalizing on attractive growth opportunities to strengthen our position as the premier independent, physical supplier of marine fuel globally. These operations will provide the foundation to further expand our operations," said Gianniotis.
Aegean is due to release its financial results for the three months ended September 30, 2013 on Wednesday, with a conference call to discuss the results planned for the following day.
