Kilgore, Texas-Martin Midstream Partners LP has closed on the purchase of certain shore-based marine terminal assets from Martin Resource Management Corp. (MRMC) the owner of Martin Midstream GP LLC and general partner of MMLP. Earlier, MRMC purchased 100 percent of the membership interests in L&L Holdings (Louisiana) LLC. Simultaneous with the close of that transaction, MMLP acquired certain L&L terminals and terminalling-related assets from MRMC for a purchase price of approximately $36.5 million. The acquisition is immediately accretive to MMLP unit holders and was funded using availability under the LP’s revolving credit facility. Through this acquisition, MMLP has acquired an additional 13 marine and one inland terminalling facility located across the Louisiana Gulf Coast. The LP now owns a system of 27 shore-based facilities in four states along the Gulf Coast. “We are pleased to announce strategic growth in the form of additional marine terminals from L&L,” said Ruben Martin, president and CEO of the general partner. “We have now created what we believe is one of the largest, most geographically diverse fuel and lube distribution systems on the Gulf Coast. More importantly, the transaction means additional stable, fee-based cash flows for our unit holders.” In similar fashion to the LP’s existing marine terminal operations, MMLP has entered into a long-term throughput agreement with MRMC for use of the assets. As part of the throughput agreement, MRMC will continue to own all inventory and working capital elements of the fuel and lubricant distribution business, which is consistent with current and past practices. In addition, MRMC has agreed to guarantee a minimum throughput volume to the LP in exchange for use of the assets, resulting in additional stable, fee-based cash flow to MMLP.
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