Ergon to buy Blueknight GP

20.07.2016. Ergon Asphalt & Emulsions, Inc, a subsidiary of Jackson, Mississippi-based Ergon, Inc, has agreed to purchase 100 percent of Blueknight GP Holding, LLC.
As part of the deal Ergon has agreed to sell nine asphalt terminals it currently owns, plus US$22.1 million in cash, to Blue Knight Energy Partners (BKEP) for a total consideration of $130.9 million.
The total package involves Ergon issuing 18,312,968 Series A preferred units in a private placement, and acquiring $5 million of common units for cash. In addition, BKEP has agreed to repurchase 13,335,390 of its Series A preferred units currently owned by Blueknight Energy Holding, Inc (Vitol) and CB-Blueknight, LLC (Charlesbank).
The nine terminals acquired by BKEP from Ergon are in Wolcott, Kansas; Ennis, Texas; Chandler, Arizona; Mt Pleasant, Texas; Pleasanton, Texas; Birmingport, Alabama; Memphis, Tennessee; Nashville, Tennessee; and Yellow Creek, Mississippi, and include approximately 2 million barrels of storage capacity.
Once the transaction has closed, Blueknight will own a total of 54 asphalt terminals in 26 states with a combined capacity of 10.2 million barrels of asphalt and residual fuel oil storage. BKEP also owns and operates some 7.4 million barrels of crude oil storage in Oklahoma and Texas, 6.6 million barrels of which are located at the Cushing, hub.