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Parsippany-based logistics partnership acquires unloading rack in ‘drop-down’ deal

PBF Logistics LP will acquire the a train-unloading unit that works with the Delaware City Refinery in Delaware from a subsidiary of PBF Energy Inc. for $150 million, the companies announced Tuesday.The Parsippany-based partnership, also known as PBFX, will buy the Delaware City Heavy Crude Unloading Rack, known as the “West Rack,” in exchange for $135 million in cash and $15 million in partnership interests.

“We are excited to announce PBF’s first drop-down (acquisition), which is an important step in our commitment to delivering growth to PBFX’s unit holders,” PBF Logistics and PBF Energy CEO Thomas Nimbley said in a prepared statement. “We are also pleased to continue to unlock the value potential of PBF Energy’s logistics assets and provide cash to PBF for the pursuit of growth opportunities and to return value to our shareholders through our previously announced share buyback program.”

The deal is expected to close Sept. 30.

PBF Energy Inc. is an independent oil refiner. In addition to the Delaware City refinery, it operates facilities in Paulsboro and Toledo, Ohio. It is the majority owner of the PBF Logistics LP partnership.

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