PBF Logistics buys four East Coast Terminals for 100M

Parsippany-based PBF Logistics LP is paying $100 million for four refined-product terminals in the Philadelphia area, it announced Tuesday.PBF Logistics, the terminal and pipeline facilities partnership of PBF Energy Inc., said in a news release that a wholly-owned subsidiary bought the four terminals from an affiliate of Plains All American Pipeline L.P.

The deal for the “East Coast Terminals,” as PBF referred to them, will be financed through cash on hand, borrowings from its senior secured revolving credit facility and equity, which could include common shares sold to PBF Energy.

“The acquisition of the East Coast Terminals is PBFX’s first third-party acquisition, adds meaningful third-party, fee-based revenue and represents an attractive acquisition multiple,” CEO Thomas Nimbley said in a prepared statement. “The addition of the East Coast Terminals increases the partnership’s total capacity by over 100 percent, to approximately 8.1 million shell barrels, and diversifies its customer and asset base.”

PBF plans to invest about $5 million in cash to improve infrastructure at the terminals, it said.

The deal is expected to close in the second quarter, subject to customary terms and conditions.