Kaneb Pipe Line Partners LP has expanded its petroleum product transportation holdings by purchasing Shore Terminals LLC for $107 million in cash and nearly 2 million shares. The acquisition was initially expected to close in November or December (OGJ Online, Sept. 27, 2000).
Shore Terminals owns seven terminals near the US West Coast, with total tankage capacity of 7.8 million bbl. There are four in California�three in the San Francisco Bay area and one near Los Angeles�plus one each in Tacoma, Wash.; Portland, Ore.; and Reno, Nev. All handle petroleum products, and all but one have deepwater access.
Kaneb also owns terminals in North Dakota, South Dakota, Nebraska, Kansas, Colorado, and Wyoming.
Kaneb says it is the third largest independent liquids terminaling company in the US. Worldwide operations include 61 facilities in 26 states and the UK.
This is the company's largest acquisition to date. Shore Terminals will become part of Kaneb affiliate ST Services' operations.
Financing for the cash portion was supplied under a revolving credit agreement with a group of banks headed by SunTrust Bank.
Kaneb Pipe Line Co. is a wholly owned subsidiary of Kaneb Services Inc.
