NGL Energy Partners Completes Gavilon Acquisition

Transaction Type
Sellers
Buyers
Announce Date
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0MM
Description

Acquired all of the equity interests of the diversified midstream energy business of Gavilon LLC.

NGL Energy Partners LP (NYSE: NGL) announced Dec. 2 that it completed the previously-announced acquisition of all of the equity interests of Gavilon LLC, the diversified midstream energy business owned by funds managed by Ospraie Management, General Atlantic and Soros Fund Management.

Omaha, Neb.-based Gavilon principally operates integrated crude oil storage, terminal and pipeline assets located in Oklahoma, Texas and Louisiana, along with a complementary crude oil and refined products supply, marketing and logistics business (SM&L). Gavilon’s crude oil assets include a 50% interest in Glass Mountain Pipeline, 4.14 million owned and 3.85 million leased barrels of storage in Cushing, Okla., a marine terminal and nine truck terminals including more than 22 lease automatic custody transfer (LACT) units. Through its SM&L business, Gavilon also leases a network of over 200 trucks, 350 railcars and 8 barges to transport crude oil for customers. In addition, Gavilon markets and supplies refined products and natural gas liquids through a network of more than 300 distribution terminals across 39 states.

“This combination is important for NGL, adding our first major pipeline investment in addition to crude oil storage at Cushing. The Glass Mountain Pipeline is scheduled to be operational in January 2014,” H. Michael Krimbill, CEO of Tulsa, Okla.-based NGL, said in the release.

“Our employees and executive team are excited to join the NGL organization. We have multiple organic projects in development and look forward to continuing to enhance and expand our energy footprint,” Greg Piper, Gavilon CEO, said in the release.

UBS Investment Bank served as NGL’s exclusive financial advisor and Locke Lord LLP served as NGL’s legal counsel. Barclays served as Gavilon’s and the sellers’ exclusive financial advisor. Jones Day and McGrath North provided legal representation for Gavilon.