Sprague completes purchase of Capital Terminal’s Rhode Island terminal
PORTSMOUTH, N.H. -- Sprague Resources LP announced that its wholly owned subsidiary, Sprague Operating Resources LLC, completed the purchase of Capital Terminal Company’s refined product terminal asset in East Providence, RI for $23 million in cash, plus payments for other customary items. This terminal had been leased exclusively by Sprague since April 2014 and has a combined storage capacity of just over 1 million barrels.
A total of $11 million in expansion capital also will be invested as part of this acquisition and subsequent optimization with Sprague’s Providence terminal.
This follows the recently announced purchase of Global Partners LP’s natural gas marketing and electricity brokerage assets for approximately $17.3 million in cash and the acquisition of L. E. Belcher, Inc.’s refined product terminal assets in Springfield, MA for $20 million in cash.
“I’m excited to announce the closing of our third transaction this month, which highlights our commitment to growth and the successful execution of that strategy. These acquisitions continue our natural gas marketing and electricity brokerage roll up strategy, while expanding our portfolio of refined product terminals and material handling assets. The value of these acquisitions is enhanced by leveraging our unique supply and logistics capabilities, as we further expand our footprint and increase customer penetration within our core business segments” said David Glendon, Sprague’s President and CEO.
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