Par Pacific completes acquisition of US Oil & Refining Co for $358mn

Houston-based energy and infrastructure management company Par Pacific announced this week the completion of its acquisition of crude oil processing and mining firm US Oil & Refining Co, a company located in Par Pacific’s downstream. The deal, which was initially announced in November 2018, will connect Par Pacific’s existing energy production assets in Hawaii (where the company has 148,000 barrels per day of combined refining capacity), the Pacific Northwest and the Rocky Mountain region to further integrate the company’s downstream, which will allow for enhancements in the scale and diversification of its operations.

The US Oil refinery Par Pacific has acquired is situated on a 139 acre plot outside of Tacoma, Washington. The facility has a 42,000 barrel per day capacity and inbuilt production flexibility in order to respond to demand. US Oil’s diversified logistics assets include a large storage facility, a proprietary 14-mile jet fuel pipeline, a marine terminal with 15 acres of waterfront property, a unit train rail facility with 107 unloading spots and a truck rack with six truck lanes and 10 loading arms.

SEE ALSO: 

• TekWorks finalizes merger with Paladin Technologies

• Pattern Energy sells K2 wind facility to Axium for $160mn

• T-Mobile makes renewable energy deal with Puget Sound Energy for US headquarters

• Click here to read the latest issue of North American Business Chief

Completed on January 14, 2019, the deal will see Par Pacific pay US$358mn for US Oil & Refining Co, plus net working capital. Par Pacific has financed the transaction with a $250 million Term Loan B issuance, a $45 million Par Pacific Term Loan funded by Bank of Hawaii ("BOH"), the issuance of approximately 2.4 million shares of Par Pacific common stock to the seller of U.S. Oil, and available liquidity.

William Pate, President and CEO of Par Pacific said the company was “pleased to close the US Oil transaction, which balances our Pacific and mainland market exposure. We expect the transaction to be immediately accretive to our 2019 earnings and cash flow. We would like to take this opportunity to welcome our new colleagues to the Par Pacific organization."