Sprague Resources LP to acquire two refined product terminals on Long Island

Sprague Resources LP’s operating subsidiary, Sprague Operating Resources LLC, has signed a definitive agreement to purchase the Lawrence and Inwood, NY refined product terminal assets of Carbo Industries, Inc. and Carbo Realty, L.L.C. for around $70m, plus payments for inventory and other customary items.

The Carbo terminals are located in Inwood and Lawrence, New York, with a combined gasoline, ethanol and distillate storage capacity of 157,000 barrels.  The terminals are supplied primarily by pipeline, but also have the ability to accept product deliveries by barge and truck.

President and CEO of Sprague, David Glendon said: “I am excited to announce our fourth acquisition of 2017.  The Carbo facilities have long been an integral component of our distribution network and we’re thrilled to convert our position from tenant to owner in this critical location, further solidifying our status as one of New York’s premier refined products terminal operators and marketers.  I’m also pleased that Cliff Hochhauser, who has been central to Carbo’s success, will be joining Sprague and continuing to lead operations at these facilities.

“While the Carbo terminals’ total combined storage capacity will rank among the smallest in our network, their expected combined annual throughput will be higher than any single Sprague-owned facility.  We look forward to this acquisition nearly tripling our gasoline throughput business, expanding the portfolio of branded gasoline suppliers we serve, and diversifying Sprague’s seasonal cash flows to mitigate the impact of weather on our operating results.”

More information visit www.spragueenergy.com

20th March 2017