Sunoco’s existing retail marketing and logistics operations in Ohio and neighboring states are not impacted by the sale.
Sunoco Inc. has completed the previously announced sale of its refinery in Toledo, Ohio to Toledo Refining Company LLC, a wholly owned subsidiary of PBF Holding Co. LLC for approximately $400 million (consisting of $200 million in cash and a $200 million two-year note).
“We are focused on operating our remaining refineries in a safe, reliable and environmentally sound manner,” said Lynn Elsenhans, Sunoco’s chairman and CEO. “As part of our drive to become the premier provider of transportation fuels, we continue to look for opportunities to grow our retail business in and near our Northeast markets. Similarly, we are committed to supporting the growth of our logistics business both inside and outside the historic Sunoco footprint.”
The purchase agreement also includes a participation payment of up to $125 million based on the future profitability of the refinery. Proceeds for related inventory are estimated at $640 million, with $350 million paid in cash at closing and the remaining balance payable in 90 days. After settlement of related crude payables, net proceeds are expected to be approximately $300 million on a pretax basis.
Sunoco’s existing retail marketing and logistics operations in Ohio and neighboring states are not impacted by the sale. The company continues to supply refined products to its branded distributors through a long term off-take agreement with PBF.
“We are grateful to the talented and dedicated employees who made the Toledo refinery an important part of the company for many years,” Elsenhans said.
Sunoco, a transportation fuel provider, with operations located primarily in the East Coast and Midwest regions of the U.S., sells transportation fuels through more than 4,900 branded retail locations in 23 states.