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KILGORE, Texas, Jan. 3, 2013 (GLOBE NEWSWIRE) -- Martin Resource Management Corporation ("MRMC"), owner of the general partner of Martin Midstream Partners L.P. (Nasdaq:MMLP) ("MMLP" or the "Partnership"), announced today the acquisition by MMLP of all of the outstanding membership interests in Talen's Marine & Fuel, LLC ("Talen's"), effective December 31, 2012 (the "Acquisition").
Simultaneous with the Acquisition, MMLP sold certain working capital-related assets to Martin Energy Services LLC ("MES"), a wholly-owned subsidiary of MRMC. In conjunction with its purchase of certain working capital-related assets, MES amended various service agreements with MMLP pursuant to which MMLP provides certain terminalling and marine services to MES. As with existing arrangements between MES and MMLP, MES markets and distributes marine fuel and lubricants along the Gulf Coast utilizing the assets of the shore-based marine terminals of the Partnership. The Talen's business will join the existing MES portfolio to create one of the leading providers of fuels, lubricants and full-service logistical support across the Gulf Coast region.
Including the sale of the working capital-related assets to MES, MMLP's net investment is approximately $47.4 million, subject to standard post-closing adjustments. MMLP purchased the Talen's membership interests from various subsidiaries of Quintana Energy Partners, L.P.
The combined transactions represent significant enhancement to MMLP's existing marine terminal infrastructure, adding ten marine terminal locations between Houston/Galveston, Texas and Port Fourchon, Louisiana with total incremental tankage of approximately 300,000 barrels and an additional 4,000 feet of water-accessible bulkhead. The Acquisition includes additional marine fueling barges and tug boats and delivery rolling stock. For 2013, MMLP expects incremental cash flows of approximately $6 million to $7 million from its net investment of $47.4 million in the Acquisition based on projected through-put, marine services and third party dock rental revenues. The Acquisition was funded under the Partnership's revolving credit facility.