Royal Vopak recently agreed to sell its Savannah, Georgia, storage terminal to BWC Terminals. The Savannah terminal boasts 250,566 cubic meters (8.8 million cubic feet) of capacity used for storage of vegetable oils, asphalt, and specialty chemicals.
The transaction, subject to post-closing adjustments, is expected to result in net cash proceeds of $80 million, the companies said. The cash and debt free enterprise value of the transaction amounts to $106 million.
“Although within Vopak we will surely miss our colleagues at the Savannah terminal, we are convinced that our customers and colleagues will be well served by becoming part of BWC Terminals’ network in North America,” Maria Ciliberti, Vopak Americas division president, said in a news release. “We would like to thank our Savannah colleagues and customers for their trust and contribution to Vopak and will work together toward a closing and smooth transfer to BWC Terminals.”
Vopak’s divestment is expected to be finalized in Q2 2023.
“The divestment of the Savannah chemical terminal is in line with our strategic goals to improve the financial performance of the portfolio, grow Vopak’s footprint in gas and industrial terminals, and accelerate toward new energies,” Vopak CFO Michiel Gilsing stated. “We remain committed to actively manage our portfolio toward infrastructure investments that support the long-term cash flow profile and return ambitions of the company.”