Alon Partners To Buy Alon Energy's Krotz Springs Refinery For $437.5 Mln

(RTTNews) - Alon USA Energy, Inc. (ALJ) and Alon USA Partners, LP (ALDW) jointly announced on Wednesday that Alon Partners will buy Alon Energy's Krotz Springs refinery for a total consideration of $437.5 million. The transaction is set to happen in a combination of $100.0 million cash and $337.5 million in common units, representing limited partner interests in Alon Partners.

Alon Partners and Alon Energy President and CEO, Paul Eisman commented: ".. The Krotz Springs refinery drop down should provide a significant increase in Adjusted EBITDA for Alon Partners. Alon Energy's Krotz Springs refinery is well positioned to generate significant free cash flow, and this transaction unlocks the value of that business."

Under the deal, Alon Energy has agreed to reimburse the expected capital expenditures relating to the scheduled major maintenance turnaround of the Krotz Springs refinery in 2015.

The acquisition is expected to be complete on or about November 28, 2014.