International-Matex Tank Terminals (IMTT) has agreed to acquire rival firm Epic Midstream for a sum of $171.5m to expand its jet fuel storage and handling capabilities, particularly in Port of Savannah.
The purchase of the liquid bulk storage and logistics solutions provider was made from affiliates of investment firms White Deer Energy and Blue Water Energy.
Epic’s portfolio comprises seven terminals in the southeast and southwest regions of the US, with operations mainly in Savannah, Georgia.
Its facilities put together have close to 3.1 million barrels of refined petroleum, biofuels, asphalt and chemical storage capacity.
IMTT CEO Richard Courtney said: “Together with a greatly expanded product line – jet fuel – Epic provides us with a presence in the strategically important Port of Savannah, some exciting new customer relationships and an energetic team assembled by terminal industry veteran David Vattimo.”
According to IMTT, Epic’s business is similar to the one run by it, as the latter is also supported by take-or-pay contracts.
Post acquisition, the terminals held by Epic will continue to store and manage jet fuel at various locations for customers including a US Department of Defense affiliate.
Vattimo said: “IMTT and Epic are a great fit, commercially and culturally.
“We have put a tremendous amount of effort into improving and leasing the Epic assets over the past several years – we think both the team and the tanks will prove to be a great addition to IMTT.”
Based on customary regulatory approvals, and meeting of other predefined conditions, the transaction is expected to close in the third quarter of the year.
Epic Midstream was launched in 2012 by White Deer Energy and Blue Water Energy following their acquisition of five refined products storage terminals in the US Southeast.