Stake In MN Refinery, Gas Stations Sold For $775M

In a deal valued at $775 million, two private equity firms have sold their interests in Northern Tier Energy—which operates a Minnesota refinery, as well as a portfolio of gas stations in Minnesota—to a Texas-based oil refining and distribution company.

Two investors recently sold their stakes in Northern Tier Energy, LP—which operates a St. Paul Park refinery, as well as 163 SuperAmerica in Minnesota and Wisconsin—in a deal valued at $775 million.
 
Northern Tier, a Connecticut-based refining, retail, and pipeline company, was established in 2010 by two private equity firms to operate the assets the firms purchased from Marathona Houston-based oil and gas exploration and production company.
 
The private equity firms—Acon Investments, LLC, (based in Washington, D.C.) and TPG Capital, LP, (Fort Worth, Texas)—signed a definitive agreement on Tuesday to sell their ownership interests in Northern Tier Energy to Western Refining, Inc., an El Paso, Texas-based independent refining and marketing company.
 
The deal, valued at $775 million, gives Western Refining the “general partner” interest in the company, as well as a nearly 40 percent limited partnership ownership of Northern Tier Energy.
 
Northern Tier Energy representatives could not immediately be reached on Tuesday to comment on what impact the transaction may have on the operations of the Minnesota refinery or gas stations.
 
Jeff Stevens, president and CEO of Western Refining, said that his company’s investment in Northern Tier Energy expands its refining operations and adds geographic diversity to its business.
 
“Northern Tier Energy's St. Paul Park refinery is a very successful refinery with pipeline access to cost-advantaged crude oil and refined product regions that historically have generated strong product margins,” he said in a statement.
 
Northern Tier Energy serves 15 states in the Midwest. Its St. Paul Park refinery produces 89,500 barrels per day. In addition to operating 163 gas stations/convenience stores, Northern Tier Energy said it “supports” 74 franchised convenience stores and owns a bakery and commissary under the SuperMom's brand.
 
Western Refining’s refining segment includes operations in El Paso, Texas, and Gallup, New Mexico. The company’s wholesale segment includes crude oil and finished product truck transports, as well as petroleum product operations in Arizona, California, Colorado, Georgia, Maryland, Nevada, New Mexico, Texas, and Virginia.  Western Refining’s retail segment includes gas stations/convenience stores in Arizona, Colorado, New Mexico, and Texas.