OMAHA, Neb. - Gavilon, LLC on June 15 announced that it has signed a definitive agreement to purchase the refined products rack marketing business from Plains All American Pipeline, L.P.
The transaction will significantly expand Gavilon's participation in the wholesale fuels business, giving the company access to approximately 180 terminals throughout the U.S. The acquisition is expected to be complete during the third quarter of 2011.
"We are looking forward to being a critical link in the supply chain between producers and customers in the refined products marketing sector," said Rob Fuller, head of refined products marketing and trading at Gavilon. "The addition of this wholesale fuels rack marketing business will also greatly enhance our renewable fuels distribution network and diversify our customer base."
"We are very pleased to add such a strategic piece of business to our physical energy services portfolio," said Tom Ramsey, chief operating officer of Gavilon's energy segment. "This transaction will leverage our energy marketing and trading expertise, and grow our margin-based income."
The refined products rack marketing team will be based in Houston.