Valero announces sale of Paulsboro, NJ, refinery

By OGJ editors
HOUSTON, Sept. 27 -- Valero Energy Corp. has signed an agreement to sell its 185,000-b/d refinery at Paulsboro, NJ, to PBF Holding Co. LLC, a wholly owned subsidiary of PBF Energy Co. LLC, for $360 million plus the value of net working capital and inventories, currently estimated to be $275 million.

The sale price consists of $180 million in cash at closing and a note in the amount $180 million with a term not to exceed 18 months, Valero reported. The transaction is expected to close in the fourth quarter, contingent upon regulatory and other customary approvals.

San Antonio-based Valero, which owns 15 refineries in the US, Canada, and Aruba, decided to explore its strategic options for the Paulsboro refinery in third-quarter 2009 as part of its goal to exit refining operations on the US East Coast.