Valero selling Paulsboro refinery
A subsidiary of Valero Energy Corp. has signed an agreement to sell the ownership of its 185,000 bpd Paulsboro refinery in New Jersey to PBF Holding Co., LLC, a wholly owned subsidiary of PBF Energy Co., LLC. The net sale price is approximately $360 million plus the value of net working capital and inventories, currently estimated to be $275 million. Consideration for the $360 million sale price consists of $180 million in cash at closing and a note in the amount $180 million with a term not to exceed 18 months. The transaction is expected to close in the fourth quarter and is contingent upon regulatory and other customary approvals.
Valero decided to explore its strategic options for the Paulsboro refinery in the third quarter of 2009 as part of its ongoing evaluation of its portfolio of assets. Earlier this year, a PBF subsidiary purchased the terminaling operations and idle refining assets at Valero's shutdown Delaware City refinery in Delaware.
"The sale brings Valero a fair value for the operation and will allow us to achieve our stated strategic goal to exit refining in the US East Coast and focus on other opportunities," said Valero Chairman and CEO Bill Klesse.
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