Calumet to buy Wisconsin refinery from Murphy Oil for around $475mn
Murphy Oil has agreed to sell its 34,300 bpd refinery in Superior, Wisconsin, for $214 million plus the value of hydrocarbon inventory to refiner Calumet Specialty Products.
The hydrocarbon inventory will be valued based on market prices at closing, the company said. The inventory was valued at approximately $260 million as of June 30.
The sale is subject to customary regulatory approvals and conditions, and is expected to close later in the third quarter or fourth quarter of 2011.
David M. Wood, Murphy’s CEO, said: “We are pleased to announce the sale of our Superior Refinery as we execute on our strategy to exit the refining business. The price realization for Superior represents fair market value for the assets and we look to redeploy the proceeds and working capital from the sales process into our upstream growth business.”
Davis Polk & Wardwell LLP is acting as legal counsel to Murphy. Goldman, Sachs & Co. is acting as financial advisor to Murphy.
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