Americas News
Gulf Coast Fuel Provider Makes Acquisition
Martin Midstream Partners L.P. [NASDAQ:MMLP] (MMLP), a subsidiary of Martin Resource Management Corporation (MRMC) says it has acquired Talen's Marine & Fuel LLC (Talen's) from various subsidiaries of Quintana Energy Partners, L.P..
Talen's, a supplier of fuel, lube, and chemicals, has 10 locations along the U.S. Gulf of Mexico, and the acquisition also brings MMLP 300,00 additional barrels of tankage and 4,000 feet of water-accessible bulkhead, as well as markine fueling barges, tug boats, and delivery rolling stock.
The deal also involves the sale of certain assets from MMLP to fellow MRMC subsidiary Martin Energy Services LLC (MES), and results in a net cost of $47.4 million to MMLP.
Talen's business will join MES, which markets and distributes marine fuel and lubricants, using MMLP's terminals and marine services.
"This accretive acquisition supports our Partnership's strategy for continued stable, fee-based growth," said Ruben Martin, president of MRMC.
"We expect stable and growing through-put throughout our entire marine terminal system as current forecasts show favorable activity in the Gulf of Mexico.
"The acquisition gives MMLP a leading market position of fueling and lubricant terminals along the Gulf Coast."
MMLP made a profit of $24 million on revenues of $1.2 billion in 2011, according to its SEC filings.
