Global Partners Closes on Acquisition of Liquid Energy Terminals
WALTHAM, Mass. — Global Partners LP closed on its acquisition of four liquid energy terminals from Gulf Oil LP for $212.3 million.
The terminals are strategically located in Chelsea, Mass.; New Haven, Conn.; and Linden and Woodbury, N.J. They will further enhance Global Partners' position in the energy economy of the Northeast, the company stated.
With a combined shell capacity of approximately 3 million barrels, these terminals expand the company's ability to store and distribute gasoline, distillates and ethanol. The acquisition aligns with Global Partners' strategy to acquire and invest in assets that allow the partnership to leverage scale from its integrated network in high-demand markets.
[Read more: Global Partners Closes Out a 'Transformational' 2023]
"This acquisition further delivers on our commitment to strategic growth and our ability to identify and capitalize on assets that leverage our growing network," said Global Partners President and CEO Eric Slifka.
The new terminals are a key fit in the partnership's network. Linden and Woodbury open new markets, while New Haven adds gasoline capabilities to the company's terminal portfolio in Connecticut. The Chelsea terminal allows Global Partners to continue to serve the Boston market as it replaces the capabilities of its Revere. Mass., terminal, which was strategically divested for $150 million in 2022.
"We are happy to finalize this acquisition and welcome these terminals into our growing network. These assets will strengthen our existing operations and provide us with new opportunities to serve our customers and enhance our competitive advantage," Slifka added.
The original purchase agreement included a fifth terminal in South Portland, Maine. However, the two companies revised the pact following antitrust concerns raised by the Federal Trade Commission (FTC).
"Robust competition at all stages of the petroleum products supply chain is critical to ensure affordable access to the fuels that power people's vehicles and heat their homes and businesses. The FTC is pleased that Global Partners has abandoned its anticompetitive acquisition of Gulf Oil's terminal in South Portland, Maine," said FTC Bureau of Competition Director Henry Liu. "This acquisition threatened to limit competition and increase prices, affecting consumers who use heating oil and diesel fuel in and around the Portland area. Many thanks to the FTC staff for their work on this matter and to the office of the Maine Attorney General for their partnership throughout the investigation."
Global Partners recently doubled its footprint with the acquisition of 25 liquid energy terminals from Motiva Enterprises LLC. The new assets expand access to a critical network of marine loading facilities as well as the Colonial, Plantation, Enterprise, Explorer and Magellan refined product pipelines.
Waltham-based Global Partners operates or maintains dedicated storage at 49 liquid energy terminals — with connectivity to strategic rail, pipeline and marine assets — spanning from Maine to Florida and into the U.S. Gulf States. Through this extensive network, the company distributes gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers. In addition, Global Partners owns, supplies and operates more than 1,700 retail locations across 12 Northeast states, the Mid-Atlantic and Texas.
Recognized as one of Fortune's Most Admired Companies, Global Partners is embracing progress and diversifying to meet the needs of the energy transition. Last month, the company debuted a new brand identity that reflects and embodies its commitment to supplying the energy people need today, while actively investing in and promoting sustainable alternatives for the future, Global Partners stated.