Delek US to Purchase Biodiesel Production Facility

BRENTWOOD, Tenn. -- Delek US Holdings Inc. will purchase a biodiesel production facility and related assets in Cleburne, Texas, from EQM Technologies & Energy Inc. for approximately $5.3 million. According to Delek, parent of MAPCO Express convenience stores, the transaction is expected to close on or before Jan. 23.

The Texas biodiesel facility has a production capacity of approximately 12 million gallons per year. Delek states it intends to spend $3 million in capital expenditures during 2013 to improve the feedstock flexibility at the facility.

"We ended 2012 with approximately $600 million of cash and a net cash position of approximately $240 million, which provides us the ability to take advantage of opportunities to grow and expand our operations," said Uzi Yemin, chairman and CEO at Delek US Holdings. "… We will continue to explore opportunities to grow our business and return value to our shareholders in 2013."

Delek US Holdings has 372 company-operated c-store locations that operate under the MAPCO Express, MAPCO Mart, East Coast, Fast Food and Fuel, Favorite Markets, Delta Express and Discount Food Mart brand names. Subsidiaries of the company also own 62.4 percent of the recently spun off Delek Logistics Partners LP, a master limited partnership focused on owning and operating midstream energy infrastructure assets.