Exit: White Deer and Blue Water exit Epic Midstream for $171.5m


[Context: On August 2, White Deer Energy and Blue Water Energy announced the sale of Epic Midstream to International-Matex Tank Terminals for $171.5m. Further details are below.]

IMTT Enters Into Agreement to Acquire Epic Midstream

  • Acquisition of 3.1 million barrels of liquid storage capacity
  • Increases IMTTs jet fuel storage and handling capabilities
  • Expands markets served to Port of Savannah

NEW ORLEANS–August 02, 2017–(BUSINESS WIRE)–International-Matex Tank Terminals (IMTT) announced that it has entered into an agreement to acquire Epic Midstream (Epic) from affiliates of White Deer Energy and Blue Water Energy. The transaction values Epic at $171.5 million, not including working capital adjustments, and is expected to close in the third quarter of 2017, subject to customary regulatory approvals, and satisfaction of other conditions precedent.

The addition of Epic adds an exciting new dimension to IMTT, said Richard Courtney, chief executive officer of IMTT. Together with a greatly expanded product line jet fuel Epic provides us with a presence in the strategically important Port of Savannah, some exciting new customer relationships and an energetic team assembled by terminal industry veteran David Vattimo.

IMTT and Epic are a great fit, commercially and culturally, said Vattimo. We have put a tremendous amount of effort into improving and leasing the Epic assets over the past several years – we think both the team and the tanks will prove to be a great addition to IMTT.

Epic operates a portfolio of seven terminals in the U.S. Southeast and Southwest, with principal operations in Savannah, Georgia. The facilities comprise approximately 3.1 million barrels of refined petroleum, asphalt, biofuels and chemical storage capacity. The business is supported by take-or-pay contracts similar to those at IMTT.

Epic terminals will continue to store and handle jet fuel at a number of locations for customers including an affiliate of the U.S. Department of Defense that has been an Epic customer for more than 20 years.

The acquisition is being funded by IMTT parent, Macquarie Infrastructure Corporation (NYSE: MIC), with the issuance of $125.0 million in new MIC shares to the sellers and $46.5 million in cash including with drawings on IMTTs revolving credit facility. MIC expects the acquisition to be accretive to its Free Cash Flow in 2018.

About IMTT

International-Matex Tank Terminals (IMTT) is an industry leader in the handling and storage of bulk liquid products through its ownership and operation of ten terminals in the U.S. and two additional facilities in Canada. The terminals handle petroleum (primarily refined), chemical, and vegetable and animal oil products for customers including refiners, commodities traders and specialty chemical manufacturers. Customers retain ownership of the bulk liquids, as well as responsibility for insuring those products. IMTT is the lessor of its more than 45 million barrels of storage capacity.

About MIC

MIC owns and operates a diversified group of businesses providing basic services to customers in the United States. Its businesses consist of a bulk liquid terminals business, International-Matex Tank Terminals, an airport services business, Atlantic Aviation, entities comprising an energy services, production and distribution segment, MIC Hawaii, and entities comprising a Contracted Power segment. For additional information, please visit the MIC website at www.macquarie.com/mic. MIC-G

MIC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of MIC do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of MIC.