Zenith Energy U.S. To Acquire ARC Logistics Partners
Combination creates a leading terminaling business with over 22 million barrels of crude oil, petroleum products and other liquids storage. Brings together diversified portfolio of complementary energy logistics assets and strong domestic and international footprint.
Zenith U.S. will acquire the public common units of Arc Logistics in cash for $16.50 per common unit, which represents a premium of 15.2% to the closing unit price on August 28, 2017. The closing of the transaction is expected to occur in the fourth quarter of 2017 or early in the first quarter of 2018 and is subject to customary closing conditions, including receipt of regulatory approvals and approval by the holders of a majority of the common units of Arc Logistics. Affiliates of Lightfoot Capital Partners, LP and Lightfoot Capital Partners GP LLC have agreed to support and vote in favor of the transaction. The Merger Agreement and the transactions contemplated thereby have been approved by the boards of directors of both Zenith U.S. and Arc Logistics and by the conflicts committee of the board of directors of Arc Logistics.
“We are very excited to build a platform enabling us to enter the U.S. terminaling market, and very pleased to combine with Arc Logistics in this transformative transaction that will significantly increase the Zenith group of companies’ footprint, expanding our scope of services to our combined customers worldwide,” said Jeff Armstrong, President and Chief Executive Officer of the Zenith businesses. “Arc Logistics’ diversified portfolio of logistics assets serves critical links between supply and demand locations in the U.S., and we intend to further develop their existing terminals as well as pursue new developments throughout North America. Together we look forward to developing a world-class midstream asset operator with long-term growth opportunities.”
Kirkland & Ellis LLP are acting as legal advisors to Zenith U.S. Barclays and Credit Suisse are acting as financial advisors to Zenith U.S. and are providing committed financing for the transaction.
With headquarters in Houston, Zenith is an international liquids and bulk terminaling company that owns and operates over 15 million barrels of crude oil and petroleum products storage in Amsterdam, Ireland and Colombia. Zenith is pursuing opportunities to buy, build and operate terminals primarily in Latin America and Europe. Zenith U.S. will share the headquarters of Zenith and focus on the integration of Arc Logistics and other opportunities to buy, build and operate terminals in North America. The Companies are focused on the storage and distribution for petroleum, refined products, natural gas liquids and petrochemicals, and expect to acquire and operate logistics and distribution assets that support terminals, such as pipelines, truck racks and barges. For more information, please visit www.zenithem.com.