Sprague To Buy Castle Oil Port Morris Terminal And Related Business In Bronx, NY

(RTTNews) - Sprague Resources LP (SRLP) said Tuesday that its operating subsidiary, Sprague Operating Resources LLC, has agreed to buy the assets of Castle Oil Corp. and certain of its affiliates, including Castle's Port Morris terminal and its associated wholesale, commercial, and retail fuel distribution business for a combined $56 million in cash and SRLP units, plus payments for Castle's inventory as of closing.

Castle's Port Morris terminal is the largest deepwater petroleum products terminal in New York City, with a total storage capacity of 907,000 barrels, handling distillates, residual fuel, asphalt and biodiesel. The terminal includes an interconnected tank system enabling on-site blending and is conveniently located on the East River with deepwater marine access on multiple ship and barge berths.

The acquisition is expected to close before the end of the year.