Oklahoma City-based Blueknight Energy Partners announced this week it completed the $109 million purchase of nine asphalt terminals from Ergon Asphalt and Emulsions of Jackson, Mississippi. At the same time, Ergon wrapped up it acquisition of Blueknight’s General Partner.
As part of the $108.8 million dollar purchase by Blueknight Energy, Ergon kicked in $22.1 million of cash in return for 18,312,968 Series A preferred units and acquired 847,457 common units for nearly $5 million in a private placement.
Blueknight explained that in connection with the purchases, it entered into a seven-year storage throughput and handling agreement with Ergon. It means Ergon will provide storage and terminalling services at the nine terminals.
But there is more to the deal. Blueknight Energy repurchased 13,335,390 of its Series A preferred units previously owned by Blueknight Energy Holding, Inc and CB-Blueknight, LLC for approximately $95.3 million.
The nine terminals now under the ownership of Blueknight Energy are in Wolcott, Kansas; Ennis, Texas; Chandler, Arizona; Mt. Pleasant, Texas; Pleasanton, Texas; Birmingport, Alabama; Memphis, Tennessee; Nashville, Tennessee; and Yellow Creek, Mississippi.
BKEP also announces the addition of five new members of its Board of Directors of the General Partner. They are William W. Lampton, Robert H. Lampton, Jimmy A. Langdon, Donald M. Brooks and Edward Drew Brooks. They will be replacing the board members affiliated with Vitol and Charlesbank.
