Alon Closes Acquisition of Paramount Petroleum Corporation

abarrelfullabarrelfull wrote on 08 Nov 2012 07:33
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Aug. 7th 2006

Alon USA Energy, Inc. ("Alon") today announced that it has closed on its acquisition of Paramount Petroleum Corporation ("Paramount") with an effective date of July 31, 2006. The purchase price was approximately $314 million in cash and approximately $150 million in assumed net debt with excess working capital of $50 million.

"We are very happy to expand our refining capacity with the acquisition of Paramount. We have added 66,000 barrels per day (bpd) of heavy crude west coast refining capacity and seven asphalt terminals to our company," said Jeff Morris, Alon's President and CEO. "Paramount's refinery in the Los Angeles area has recently been upgraded to produce Carb Diesel and Carbob Gasoline. We believe our fuels experience and operational capabilities will provide Alon with significant future growth opportunities."
The Paramount transaction includes:

  • Paramount's 54,000 bpd refinery in Paramount, CA;
  • Paramount's 12,000 bpd heavy crude refinery in Portland, OR;
  • Paramount's seven asphalt terminals located in Seattle, WA, Elk Grove and Mojave, CA, Fernley, NV, Phoenix, Fredonia, and Flagstaff, AZ;
  • Paramount's 50% interest in Wright Asphalt Products Company, which specializes in patented tire rubber modified asphalt products that are provided in six terminals.

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