Dec 02, 2010

PBF To Acquire Sunoco’s Toledo, Ohio Refinery

Parsippany, NJ, December 2, 2010 – PBF Holding Company LLC and its subsidiary, Toledo Refining Company LLC (“PBF”) have entered into an agreement to acquire the 170,000 barrel per day Toledo, Ohio refinery and related assets from Sunoco, Inc. (R&M).  PBF will acquire the facility for approximately $200 million in cash and will enter into a note with the seller in the amount of $200 million.  In addition to the purchase price, PBF will acquire the hydrocarbon inventory at closing.  In the event that the refinery exceeds certain profitability thresholds there is a participation payment of up to $125 million.  The transaction is expected to close in the first quarter of 2011.

The Toledo facility is a high conversion light/sweet refinery with a Nelson complexity rating of 9.2.  Major process units include a fluid catalytic cracking unit, a high pressure hydrocracker, a gasoline hydrotreater, two reformers, an alkylation unit and a UDEX unit.  There are approximately five million barrels of crude oil and product storage at the refinery.

Thomas D. O’Malley, PBF’s Chairman, said, “The Toledo acquisition provides PBF with growth in a different geographic area.  This refinery is well configured to serve its marketplace.  The PBF team, many of whom previously worked for Premcor, is very familiar with the mid-Continent marketplace, having managed Premcor’s Lima, Ohio refinery.” 

O’Malley said further, “PBF intends to continue to expand its footprint in this important strategic US industry. We are pleased that in addition to the refinery itself, Toledo comes with a team of highly experienced operators and managers.”

Thomas Nimbley, PBF’s CEO, commented, “Toledo represents an important addition to the PBF portfolio.  Toledo is a sophisticated refinery that is capable of producing a very high percentage of gasoline, jet and diesel fuels that are needed to serve the consumer base in the region.  PBF plans to retain substantially the same workforce at the refinery.  Toledo has talented and experienced employees and PBF looks forward to working with them following completion of the acquisition.”

David Foley, Senior Managing Director of Blackstone, said, “Within less than one year, PBF has acquired and executed definitive purchase agreements to acquire three refineries having a total production capacity of approximately 530,000 barrels per day.  Blackstone is pleased to invest our private equity capital to build a strong new company that will reinvigorate this critical component of America’s energy infrastructure, providing attractive jobs to our employees and reliably delivering clean fuels to American consumers through management’s focus on safe and efficient operations.”

“The Toledo Refinery is a high quality facility in a very attractive refining market and adds considerable scale and diversity to PBF’s existing asset base,” said Timothy H. Day, Managing Director for First Reserve Corporation.  “First Reserve is pleased to continue to support Tom and his team in the growth and development of PBF.”

PBF’s principal owners are The Blackstone Group and First Reserve Corporation. 

Contacts:

PBF Contact:
Michael Gayda
Tel:  973.455.7500

First Reserve Corporation Contact:
Caroline Harris
Tel: 212.279.3115 ext 222

Blackstone Contact:
Christine Anderson
Tel: 212.583.5182

About PBF Holding

PBF owns and operates oil refineries and related facilities in North America.  Our mission is to identify attractive acquisition opportunities in the petroleum refining industry and execute acquisitions that provide superior returns to our investors, provide employees with a safe and rewarding workplace, and become a positive influence in the communities where we do business. Further information is available at www.pbfenergy.com

About Blackstone

Blackstone (NYSE: BX) is one of the world’s leading investment and advisory firms. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies it invests in, the companies it advises and the broader global economy. The firm accomplishes this through the commitment of its extraordinary people and flexible capital. Blackstone’s alternative asset management businesses include the management of private equity funds, real estate funds, funds of hedge funds, credit-oriented fund and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com.

About First Reserve Corporation

First Reserve is the world’s leading private equity firm in the energy industry, making both private equity and infrastructure investments throughout the energy value chain.  For more than 25 years, it has invested solely in the global energy industry, and has developed an unparalleled franchise, utilizing its broad base of specialized energy industry knowledge as a competitive advantage.  The firm is currently investing its most recent fund, which closed in 2009 at approximately $9 billion.  First Reserve invests strategically across a wide range of energy industry sectors, developing a portfolio that is diversified across the energy value chain, backing talented management teams and building value by building companies.  Further information is available at www.firstreserve.com.