Shell Midstream Partners, L.P has recently announced that it has agreed to acquire an additional 20% equity interest in Mars Oil Pipeline Company (Mars) and a 49% equity interest in Odyssey Pipeline L.L.C. (Odyssey) off of Shell for US$350 million.
The acquisition price is approximately 8.4 times higher than the forecasted 2017 Adjusted EBITDA of the acquired interests. The acquisition is expected to be immediately accretive to unitholders and funded with a combination of cash on hand and borrowings under Shell Midstream Partners’ credit facilities.
The acquisition is expected to close on 3 October 2016.
“This acquisition further diversifies the Shell Midstream Partners portfolio with the inclusion of a well-positioned eastern Gulf of Mexico asset. In addition, the partnership acquired an additional interest in an existing asset with a strong track record of delivery,” said John Hollowell, CEO of Shell Midstream Partners.
Mars delivers crude from the Mars Basin and the Amberjack system. Odyssey transports product from the eastern Gulf of Mexico to the Delta Pipeline system, enabling deliveries to refineries in Louisiana and Mississippi.
Adapted from press release by Anna Nicklin
Read the article online at: https://www.worldpipelines.com/business-news/28092016/shell-midstream-partners-acquires-interests/