Delek Logistics has closed its acquisition of Permian Basin water midstream company H2O Midstream for $230 million in cash and stock.

Delek acquired H2O Midstream’s water gathering, transportation, recycling, storage and disposal assets. H2O is the largest pure-play water midstream company in the Permian Basin, with more than 250 miles of pipeline, Delek said in a Sept. 12 press release. Delek first announced the acquisition in August.

Delek is a Tennessee-based water midstream company with assets located throughout the Permian Basin.

The $230 million deal included $160 million in cash at closing and $70 million of preferred redeemable equity, Delek said in the press release announcing the closing. The acquisition will be funded through cash and debt financing.

“The acquisition of H2O Midstream supports our core strategy of providing a full midstream service solution to our existing and third-party customers in the prolific Permian Basin,” the company said. “H2O Midstream operations have significant overlap with our existing Midland, Texas operations. The acquisition also presents an opportunity to extract significant synergies through cost optimization and cross product sales.”

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