Valero Energy Corporation to Sell Krotz Springs Refinery

abarrelfullabarrelfull wrote on 22 Jun 2015 07:20

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Valero Energy Corporation (NYSE: VLO) announced today that it has agreed to sell its 85,000 barrel-per-day refinery in Krotz Springs, Louisiana to Alon USA Energy Inc. (NYSE: ALJ), for $333 million plus an earn-out provision currently valued in excess of $100 million. Both companies' boards of directors have approved the transaction, and the sale is expected to close in July 2008, subject to regulatory approvals. The transaction will also include working capital at the refinery, which will be valued at market prices at closing.

"The Krotz Springs refinery is a good fit for Alon, and this transaction is a good deal for Valero's stockholders," said Bill Klesse, Valero's Chairman and Chief Executive Officer. "This transaction is consistent with our strategy to concentrate on our core refineries where we see higher returns for the long run. Alon is a high-quality company that will benefit the great group of dedicated employees at this refinery as well as the community of Krotz Springs."

Valero had announced earlier this year that it would explore strategic alternatives for the Krotz Springs refinery. It is also exploring options for its refineries in Aruba, Memphis, Tennessee and Ardmore, Oklahoma. J.P. Morgan Securities Inc. acted as exclusive financial adviser to Valero on this transaction.

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