Kaneb Agrees to Acquire Statia Facilities

Kaneb Pipe Line Partners LP has signed a definitive agreement to acquire all of the liquids terminaling subsidiaries of Statia Terminals Group NV. The acquisition of Statia's terminaling facilities in St Eustatius, Netherlands Antilles; and Point Tupper, Nova Scotia, Canada, has a value of about $300 million. The transaction is subject to certain regulatory approvals and approval of Statia shareholders.

Under terms of the agreement, the partnership will acquire the operating subsidiaries of Statia for approximately $193 million plus assumption of some $107 million in debt. The acquisition is expected to close in first-quarter 2002.

Statia's storage and transshipment facility on St Eustatius, an island east of Puerto Rico, has tankage capacity of 11.3 million barrels. The facility at Point Tupper has tankage capacity of 7.4 million barrels.

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