Delek US Completes Purchase of Alon USA Share

BRENTWOOD, Tenn. — Delek US Holdings Inc. on Thursday completed its acquisition of 48 percent (33.7 million outstanding shares) of Alon USA Energy Inc. from parent company Alon Israel Oil Co. Ltd.

As CSNews Online previously reported, Delek US Chairman, President and CEO Uzi Yemin had stated the transaction could close as early as May 12. The deal closed just two days after this date.

“We are pleased to have completed this transaction quickly and would like to thank the management teams of both Alon Israel and Alon USA for their support during this process,” Yemin said Thursday. “In addition, through the backing of our lenders, we were able to finance this transaction in a timely manner. This acquisition is an exciting strategic step for us as it broadens our asset diversity, and we look forward to working with Alon USA’s board of directors and management team in the future.”

The approximate value of the transaction consideration is $564.5 million based upon a closing price of $36.59 per share of Delek US common stock on May 13. Delek US used cash on hand and a credit facility to pay for the 48-percent stake.

As part of the deal, five seats on the 11-member Alon USA board of directors previously held by Alon Israel representatives have been filled by representatives from Delek US. This includes Yemin, who was named chairman of the Alon USA board.

This transaction could ultimately lead to Delek US purchasing Alon USA in its entirety. During Delek US’ 2015 fiscal first-quarter earnings conference call on May 6, Yemin said the company will “think seriously” about purchasing the remainder of Alon USA in the near future.

"When the markets are right, we will look at this seriously," Yemin said, regarding the timing of when Delek US might purchase Alon USA outright. "…We need to do our due diligence first."

Dallas-based Alon USA Energy is the largest 7-Eleven licensee in the United States and operates 294 convenience stores and gas stations in New Mexico and Texas.

Brentwood, Tenn.-based Delek US Holdings operates 360 convenience stores under the MAPCO Express, MAPCO Mart, East Coast, Fast Food and Fuel, Favorite Markets, Delta Express and Discount Food Mart banners.