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Global Partners Signs Agreement To Acquire Majority Interest In Basin Transload LLC

Expanding its presence in the energy-rich Bakken region, Global Partners LP (NYSE: GLP) today announced that it has signed a purchase agreement to acquire a 60% membership interest in Basin Transload LLC (“Basin Transload”), which operates two transloading facilities in North Dakota with a combined rail loading capacity of 160,000 barrels per day. The total purchase price is expected to be approximately $80 million.

The transloading facilities are approximately 195 miles apart in Columbus and Beulah, North Dakota. The Columbus facility is located along the Canadian Pacific Railway and provides single line haul service to Global’s recently expanded terminal in Albany, NY. Basin Transload’s Beulah site, which supports crude oil production efforts in the Williston Basin, is located along the Burlington Northern Santa Fe Railroad with direct long-haul service to the West Coast and Gulf Coast markets. The Partnership owns and operates a 100,000 barrel storage tank and truck offloading rack at the Columbus facility.

Under the purchase agreement, Global will acquire a 60% membership interest in Basin Transload, with the remaining 40% split evenly between current owners TGC, L.P. and MBI Holdings, LLC. Global intends to arrange an optimal financing structure for the transaction, and is currently considering several debt financing options.

The transaction is expected to be accretive in the first full year of operation, based on current operating and anticipated future performance of the Basin Transload assets and economic and market conditions.

“The acquisition of a majority stake in Basin Transload significantly broadens and strengthens our energy infrastructure in the Bakken region,” said Eric Slifka, Global’s president and chief executive officer. “The strategic locations of the Basin Transload facilities, as well as their proximity and ease of access to key suppliers, create flexibility and logistical advantages for Global. These assets enhance our footprint in one of the fastest growing oil producing regions in North America, creating new opportunities to drive product volumes and increase cash flow through a wide range of value-added services to producers and refiners.”

Stock quotes in this article: GLP 

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