NGL Energy Partners LP (NGL), the energy partnership that has gained 50 percent since it began trading in 2011, agreed to buy Gavilon LLC for $890 million in cash.
The purchase price includes about $200 million of working capital, the Tulsa, Oklahoma-based company said in a statement today. Closely held Gavilon is owned by funds managed by Ospraie Management LLC, General Atlantic LLC and Soros Fund Management LLC. Japanese trader Marubeni Corp. (8002) bought Gavilon Holdings LLC, excluding its energy business, for $2.7 billion earlier this year.
Gavilon operates storage, terminal and pipeline assets in Oklahoma, Texas and Louisiana, along with a crude oil and refined products supply, marketing and logistics business. The acquisition is expected to close in December and immediately add to NGL’s distributable cash flow per unit, the company said.
NGL, led by the former chief financial officer of Energy Transfer Partners LP, is a master-limited partnership that does logistics for crude oil and natural gas liquids producers in addition to providing water treatment services and selling propane.
UBS AG and Locke Lord LLP advised NGL on the transaction and Barclays Plc, Jones Day LP and McGrath North Mullin & Kratz PC advised Gavilon.
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