Zenith Energy U.S. has entered into a definitive agreement this morning to acquire Arc Logistics Partners LP (NYSE: ARCX) for $16.50 a share, or 15.2 percent of the closing price on Monday.
Under the terms of the Merger Agreement, Zenith will acquire all of Arc’s public common units including units owned by Lightfoot Capital and select few privately owned units, meaning that Zenith will fully own Arc Logistics.
Arc Logistics is a storage business that helps companies with movement of crude oil and petroleum products throughout North America. The company operates around mainly around the East Coast and the Gulf Coast.
“We are very excited to build a platform enabling us to enter the U.S. terminaling market, and very pleased to combine with Arc Logistics in this transformative transaction that will significantly increase the Zenith group of companies’ footprint, expanding our scope of services to our combined customers worldwide,” said Jeff Armstrong, President and Chief Executive Officer of the Zenith businesses.
“Arc Logistics’ diversified portfolio of logistics assets serves critical links between supply and demand locations in the U.S., and we intend to further develop their existing terminals as well as pursue new developments throughout North America. Together we look forward to developing a world-class midstream asset operator with long-term growth opportunities.”
The deal is expected to be completed by the fourth quarter of this fiscal year.
Arc Logistics’ shares jumped over 14 percent after the announcement that it would be purchased by Zenith Energy.