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NuStar completes buy of CITGO asphalt operations
Web Posted: 03/20/2008 11:10 AM CDT
Vicki Vaughan Express-News Business Writer
San Antonio-based NuStar Energy LP announced today that it has completed its acquisition of CITGO Asphalt Refining Co.’s asphalt operations and assets for $450 million, along with inventory of about $360 million.
The acquisition is expected to vault NuStar into the Fortune 500 for the first time, ranking it in 393rd place.
The acquisition will give NuStar the capacity to produce and sell more than 36 million arrels of asphalt and light products a year. NuStar will become the No. 3 producer of asphalt in the U.S. NuStar’s new assets include a 74,000 barrel-a-day asphlat refinery in Paulsboro, N.J. and a 30,000 barrel-a-day refinery in Savannah, Ga. It also is buying three asphalt terminals.
“We’re excited to have completed this acquisition as we now have a leading presence in one of the most attractive asphalt markets in the country and a solid footing in what we see as a great business going forward,” NuStar Chairman Bill Greehey said. “We are purchasing some very strategic assets for around 50 percent of their replacement value and we’re expecting them to make a significant contribution to our earnings.”
NuStar, formerly Valero LP, separated from Valero Energy Corp. last year.