Motiva, Flint Hills deal may be near – “Port Arthur facility is well-positioned for continued success”
HOUSTON — Motiva Enterprises and an affiliate of Flint Hills Resources announced Monday they have signed an agreement for Motiva to acquire a 100% ownership interest in Flint Hills Resources in Port Arthur, LLC.
The potential acquisition is targeted to close in the fourth quarter of 2019, subject to satisfaction of closing conditions, the company said in an issued statement.
Terms of the transaction will not be disclosed, according to a release from company officials.
Goldman Sachs & Co. is serving as an adviser to Flint Hills Resources in the matter. Jones Day is serving as legal adviser to Flint Hills Resources.
Jeff Ramsey, president and CEO of Flint Hills, said, “The Port Arthur facility is well-positioned for continued success, especially as part of the Motiva organization, which has neighboring assets with strategic synergies and integration opportunities that will help the business remain competitive.”
Both Motiva Enterprises and Flint Hill hold property on Savannah Avenue.
Flint Hills Resources Port Arthur’s chemical manufacturing facilities include an ethylene cracker, cyclohexane unit and associated ethylene & NGL pipelines. The pending Port Arthur sale does not affect Flint Hills Resources’ other chemical businesses or pipelines.
Flint Hills Resources, which acquired the Port Arthur facility in 2007, has made significant investments in the operation that improved reliability, reduced emissions and improved the overall competitiveness of the business.
Motiva Enterprises held interest in the Port Arthur operations since 1998, initially with a joint venture involving Shell Oil and Texaco. The site dates back to 1903.
Motiva, which operates the largest refinery in North America with an equivalent of more than 600,000 barrels of energy per day, has acquired other properties in Port Arthur this year, including three buildings downtown that will be converted to office use.
Motiva and the city of Port Arthur are also attempting to close a deal for the Hotel Sabine property in downtown, the city’s tallest building.
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