Andeavor will acquire Delek US Holding’s West Coast asphalt terminals for a total of $75m to provide superior customer service and expand its product offering. In addition, the company estimated that the transaction will increase its sales by approximately 20% over the next three years.
These assets include four terminals based at Elk Grove, Bakersfield, Mojave, and Phoenix, as well as 50% interest in the Paramount Nevada Asphalt Company joint venture terminal in Fernley.
Keith Casey, executive vice president of commercial and value chain for Andeavor, said: “We are excited to leverage our experience to grow our asphalt offering in the West Coast and Southwest regions, and we look forward to providing exceptional asphalt products and services to our new customers in California, Nevada and Arizona. We expect this investment to drive higher integrated margins across the value chain, offset impacts created by bunker fuel specification changes and improve the value of heavy resid produced at our refineries.”
The acquisition is subject to customary closing conditions including regulatory approval and is anticipated to close in the first half of this year.