ArcLight Buys Blackwater

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
49MM
Description

ArcLight Capital Partners LLC, an energy-focused private equity firm, plans to buy Blackwater Midstream Corp. (OTCBB: BWMS) in a transaction valued approximately $48.7 million.

Blackwater's common shareholders will receive $0.64 per share in cash for each share of outstanding common stock. The holders of convertible notes will also be entitled to receive cash based on the number of shares common stock into which the notes are convertible. Once the acquisition is complete, Blackwater's common stock will no longer be publicly owned or traded.

The agreement implies a premium of 29.4% over the average closing share price of $0.49 during the last 30-days ending June 28, 2012 and a premium of 32.1% over the average closing share price of $0.48 over the three-month period ending June 28, 2012.

Milling Benson Woodward LLP is serving as Blackwater's legal advisor in connection with this transaction. Baker Botts LLP is serving as ArcLight's legal advisor in connection with this transaction.

Blackwater Midstream Corp. is an independent developer and operator of petroleum, chemical and agricultural bulk liquid terminal storage facilities. The Company has three terminal sites located in Westwego, Louisiana; Brunswick, Georgia; and Salisbury, Maryland.

The transaction is expected to close in the fourth quarter 2012.