Par Petroleum to take the reigns as deal is expected to close in third quarter.
Par Petroleum Corp. is set to acquire San Antonio-based refiner Tesoro Corp.’s Hawaii refinery, the San Antonio Express-News reported.
According to the deal, Houston, Texas-based Par Petroleum Corp. has agreed to pay Tesoro $75 million, plus working capital of $225 million to $275 million, for the 94,000-barrel-a-day refinery in Kapolei, Hawaii. The deal includes the purchase of retail stores and associated logistics.
Tesoro expects to close on the sale in the third quarter.
Tesoro been searching for a buyer for its Hawaii plant for some time now, and noted early this year that it would convert the refinery to a storage and distribution terminal. Layoffs were set to begin this week.
“We are pleased to have reached this positive outcome for the company,” Tesoro CEO Greg Goff said in a statement. He noted that the plant isn’t part of the company’s strategic focus.
Par Petroleum has several energy-related assets. It said its board unanimously approved the purchase.
Par Petroleum said the retail gas stations would remain under the Tesoro brand.
“This is a great fit for Par Petroleum, and we are pleased to make a long-term investment in Hawaii’s economy,” Par Petrolem CEO Will Monteleone told the San Antonio Express-News.
The company said the deal would be financed by issuing $200 million in common stock and other funding.