Martin Resource Management (MRMC) is proposing to buy spinoff  Martin Midstream Partners (MMLP) for an estimated $100.3 million, according to a May 24 filing with the Securities and Exchange Commission.

In the deal, Martin Management would buy all outstanding common units of the midstream company for $3.05 per unit. The cost of the outstanding units totals $100.3 million, MRMC said in the SEC filing.

Both companies are headquartered in Kilgore, Texas, and provide services primarily along the Gulf Coast. Martin Resources created Martin Midstream in a public offering in 2002. According to the midstream firm’s website, the company offers terminals and storage services. Its transport services include a fleet of tanker trucks and inland marine barges for shipping petroleum products and by-products.

Martin Resources lists five other companies under its ownership, including Martin Energy Services, Martin Product Sales, Martin Crude Marketing, ALTEC Environmental Consulting, and Cross Oil Refining and Marketing.

In an analysis of the deal, brokerage and investment firm Stifel wrote the acquisition makes sense, “given MRMC and (President and CEO) Ruben Martin own more than 25% of (MMLP’s) common units, MMLP's high cost of capital, growth and leverage challenges, and low valuation.”

Furthermore, it’s unlikely other buyers will attempt to make a play and change the buyout offer, considering MRMC’s standing as the logical buyer, Stifel analysts said.

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