“We have increased flexibility with which to pursue a wider range of strategic initiatives capable of unlocking value for our shareholders,” says Delek US Holdings CEO.
Delek US Holdings Inc., a diversified energy company with assets in the petroleum refining, marketing and retail industries, has acquired the remaining 11.7% minority equity interest in Lion Oil Co., held by a consortium of private investors.
Delek US is acquiring the minority equity interest from more than 20 investors, most of whom have been shareholders in Lion Oil since 1985. Upon closing of the transaction, Delek US increased its total equity ownership in Lion Oil from 88.3% to 100% for approximately $13 million funded through existing cash on hand. Delek US acquired the minority equity interest for a total consideration below the carrying value attributed to the non-controlling interest in Lion Oil as of June 30, 2011.
“By assuming sole ownership of Lion Oil, we have increased flexibility with which to pursue a wider range of strategic initiatives capable of unlocking value for our shareholders, specifically as it relates to the growth and development of our marketing and logistics business,” said Uzi Yemin, president and CEO of Delek US Holdings. “Lion’s three product distribution terminals, two crude pipelines and several hundred mile gathering system are now wholly-owned by Delek US. These assets join the three wholly-owned product terminals and pipelines held by our other subsidiaries to comprise a network of logistics assets that span from West Texas into the Mid-Continent. Over time, we intend to further grow this area of our business as we seek to expand our inland presence in the downstream energy markets.”
Delek US Holdings Inc. is a diversified downstream energy business focused on petroleum refining, the wholesale distribution of refined products and convenience store retailing. The retail segment supplies fuels and merchandise through a network of approximately 390 company-operated convenience store locations operated under the MAPCO Express, MAPCO Mart, East Coast, Fast Food and Fuel, Favorite Markets, Delta Express and Discount Food Mart brand names.