Sprague Operating Resources to purchase Castle Oil Corp. assets

By Ron Kotrba | November 10, 2014

Sprague Operating Resources LLC has signed a definitive agreement to purchase the assets of Castle Oil Corp., including Castle’s Port Morris terminal and the company’s associated wholesale, commercial and retail fuel distribution business for a combined $56 million in cash and stock, plus payments for Castle’s inventory as of closing. Castle’s Port Morris terminal is the largest deepwater petroleum products terminal in New York City, with a total storage capacity of 907,000 barrels, handling distillates, residual fuel, asphalt and biodiesel. The terminal includes an interconnected tank system enabling on-site blending and is located on the East River with deepwater marine access on multiple ship and barge berths. The acquisition is expected to close before end of year.

 “Castle’s strategically located Port Morris terminal provides an outstanding platform for Sprague to strengthen and expand our service to customers in New York City and the surrounding metropolitan area,” said David Glendon, president and CEO of Sprague. “The Port Morris facility will increase Sprague's total in-service storage capacity to more than 10.9 million barrels across eighteen terminals, and solidify our status as one of New York’s premier refined products terminal operators and marketers. Castle’s history of superior customer service for more than eight decades fits well with our own 144-year focus on serving customers with dependable supply and innovative product and service offerings, and we welcome the addition of Castle's dedicated employees and strong customer relationships to Sprague. The Castle transaction is expected to be immediately accretive for our unit holders and will provide a significant addition to our core asset base to help execute our growth strategy.”  

 

 
 
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