PHILADELPHIA -- Sunoco Logistics Partners L.P. has signed a definitive agreement to purchase a refined-products terminal located in Romulus, Mich., from R.K.A. Petroleum LLC.
The terminal, with storage capacity of approximately 350,000 shell barrels, services the Detroit metropolitan area and is connected to the partnership's pipeline system. The acquisition will provide additional flexibility for customer shipments.
"The sale of the terminal to Sunoco Logistics will provide R.K.A. with the opportunity to build its relationship with an industry leader with refined [image-nocss] product terminals in Southeastern Michigan as well as other key markets throughout the Northeastern and Midwestern United States,bCrLf R.K.A. Petroleum said in a statement.
The transaction is subject to normal closing conditions for assets of this nature. Closing is expected to occur within the next 60 days.
Sunoco Logistics Partners L.P., Philadelphia, is a master limited partnership formed to acquire, own and operate refined-product and crude-oil pipelines and terminal facilities. The refined products pipeline system consists of approximately 2,200 miles of refined product pipelines located in the Northeastern and Midwestern United States, the recently acquired MagTex Pipeline System, and interests in four refined products pipelines.
Established in 1956 and based in Romulus, Mich., R.K.A. is a privately held family business. R.K.A. Petroleum distributes more than 325 million gallons of fuel annually through its network of retail dealers, commercial businesses and job sites, government and military customers, and its pipeline terminal operation.
Morgan Keegan & Co. served as financial advisor to R.K.A. Petroleum in the sale of the terminal.
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