USA: Andeavor Acquires Delek US’ West Coast Asphalt Terminals

USA: Andeavor Acquires Delek US’ West Coast Asphalt Terminals

With this, the company’s asphalt offering has grown to more than 430,000 tons

Andeavor has decided to purchase the West Coast asphalt terminals of Delek US Holdings, Inc. for a total consideration of $75 million, plus working capital, bringing Andeavor's total asphalt capacity to more than 430,000 tons across ten terminal locations. Four wholly-owned terminals include the assets, in addition to 50 percent interest in the Paramount Nevada Asphalt Company joint venture terminal.

Providing superior customer service and enriching the product offering, Andeavor expects to grow this new addition to its asphalt business to serve more customers, upon closing. Over the next three years, Andeavor expects to improve the business and increase sales by approximately 20 percent.

"We are excited to leverage our experience to grow our asphalt offering in the West Coast and Southwest regions, and we look forward to providing exceptional asphalt products and services to our new customers in California, Nevada and Arizona," said Keith Casey, Executive Vice President of Commercial and Value Chain for Andeavor. "We expect this investment to drive higher integrated margins across the value chain, offset impacts created by bunker fuel specification changes and improve the value of heavy resid produced at our refineries." PWKD14022018

Last modified onTuesday, 13 February 2018 22:46
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