San Antonio, Texas-based Valero Energy has acquired Peruvian company Pure Biofuels del Peru (PBF) from Pegasus Capital Advisors, PBF management, and its minority shareholders.
Image: The transaction also includes refined products terminals in Callao, near Lima, and in Paita, near Piura in northern Peru. Photo: courtesy of PinkBlue / FreeDigitalPhotos.net.
San Antonio, Texas-based Valero Energy has acquired Peruvian company Pure Biofuels del Peru (PBF) from Pegasus Capital Advisors, PBF management, and its minority shareholders.
Considered to be the third largest fuels importer in Peru, PBF maintains a major supply platform with a base of more than 500 customers including retailers, miners and airlines.
Financial details about the transaction were not disclosed. The transaction is said to have been funded with cash and includes refined products terminals in Callao, near Lima, and in Paita, near Piura in northern Peru.
The Callao terminal has mooring and unloading systems with Panamax vessel capability, storage capacity of about 1 million barrels for refined and renewable products and an eight-bay truck rack for products distribution.
The transaction also includes the land adjacent to the Callao terminal to support future expansion of the terminal’s storage capacity.
The Paita terminal, which is scheduled to start operations in the middle of this year, will also be able to receive Panamax vessels and will have an initial product storage capacity f 180,000 barrels.
Valero chairman, president and CEO Joe Gorder said: “This acquisition demonstrates our continued interest in expanding international product exports and wholesale fuels volumes.
“Peru is one of the fastest growing economies in Latin America and is well situated geographically to support our strategic growth plans.”
Pegasus and Company Management acquired the stake in Pure Biofuels in 2012. During the course of the investment, Pegasus partnered with company management to deleverage the balance sheet and provide strategic growth capital. The efforts resulted in increasing PBF’s production capacity from 24 million gallons in 2012 to 270 million gallons in 2017.
Pegasus partner Alec Machiels said: “Pegasus’ investment in PBF aligned with the firm’s focus on sustainability. To meet government-mandated clean fuel requirements set forth to reduce air pollution, the Peruvian refined products market is highly dependent on importing fuels.
“Our partnership with PBF has transformed a modern but once moribund terminal into a critical, cleaner energy infrastructure asset for Peru.”