SAN ANTONIO, TEXAS - February 12, 2018 - Andeavor (NYSE: ANDV) today announced that it has agreed to acquire the West Coast asphalt terminals of Delek US Holdings, Inc. ("Delek", NYSE: DK) for a total consideration of $75 million, plus working capital. The assets, formerly the Alon Asphalt Company, includes four wholly-owned terminals in Elk Grove, CA; Bakersfield, CA; Mojave, CA; and Phoenix, AZ, as well as 50 percent interest in the Paramount Nevada Asphalt Company joint venture terminal in Fernley, NV.
Upon close, Andeavor expects to grow this new addition to its asphalt business to serve more customers, provide superior customer service and expand the product offering. Andeavor expects to improve the business and increase sales by approximately 20 percent over the next three years. This acquisition will bring Andeavor's total asphalt capacity to more than 430,000 tons across ten terminal locations.
"We are excited to leverage our experience to grow our asphalt offering in the West Coast and Southwest regions, and we look forward to providing exceptional asphalt products and services to our new customers in California, Nevada and Arizona," said Keith Casey, Executive Vice President of Commercial and Value Chain for Andeavor. "We expect this investment to drive higher integrated margins across the value chain, offset impacts created by bunker fuel specification changes and improve the value of heavy resid produced at our refineries."
The acquisition, which is subject to customary closing conditions including regulatory approval, is anticipated to close in the first half of 2018.
Andeavor is a premier, highly integrated marketing, logistics and refining company. Andeavor's retail-marketing system includes more than 3,200 stores marketed under multiple well-known fuel brands, including ARCO®, SUPERAMERICA®, Shell®, Exxon(TM), Mobil(TM), Tesoro, USA Gasoline(TM) and Giant®. It also has ownership in Andeavor Logistics LP (NYSE: ANDX) and its non-economic general partner. Andeavor operates 10 refineries with a combined capacity of approximately 1.2 million barrels per day in the mid-continent and western United States.
Forward Looking Statements
This release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including without limitation statements concerning: our operational, financial and growth strategies; expectations regarding the pending acquisition and future growth of the business, including the quality, capacity and capabilities of the assets to be acquired, the timing of the closing and certain expected financial benefits and value resulting from the acquisition. For more information concerning factors that could affect these statements, see our annual report on Form 10-K, quarterly reports on Form 10-Q, and other public filings and press releases, available at www.andeavor.com. We undertake no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise.
Brad Troutman, Vice President, Investor Relations, (210) 626-4757
Andeavor Media Relations, firstname.lastname@example.org, (210) 626-7702