Parsippany-based PBF Logistics L.P. has entered into an agreement with Crown Point International LLC to purchase its wholly-owned subsidiary, CPI Operations LLC, it announced Tuesday.
CPI’s assets, or the East Coast Storage Assets, include a storage facility, a marine facility, a rail facility, a truck terminal, equipment, contracts and more located near Paulsboro. It’s total value is $107 million.
“The acquisition of the East Coast Storage Assets will be immediately accretive and will strategically position (PBF Logistics) for the upcoming International Maritime Organization’s low-sulfur fuel specification change in 2020 by adding significant marine-accessible storage assets to our portfolio that are capable of handling a range of material from finished petroleum products and residual fuel oils to heavy, high-sulfur refinery feedstocks. We look forward to adding the Crown Point employees to the PBF Logistics’ family and driving further accretive growth for (PBF Logistics),” Matt Lucey, PBF Logistics executive vice president, said.
PBF Logistics said it will make an initial payment of $75 million and will pay the remaining balance one year after the deal closes. Following the closing, PBF Logistics expects to invest about $8.5 million over the next two years in projects to enhance the facilities.
The deal is expected to close in the fourth quarter of this year.