NGL buying Gavilon's energy business for $890M

NGL Energy Partners is buying Gavilon's energy business for $890 million

Associated Press

TULSA, Okla. (AP) -- NGL Energy Partners LP is buying Gavilon's energy business from funds managed by Ospraie Management, General Atlantic and Soros Fund Management for $890 million.

The purchase price includes approximately $200 million in working capital.

Gavilon runs integrated crude oil storage, terminal and pipeline assets located in Oklahoma, Texas and Louisiana. It also has a complementary crude oil and refined products supply, marketing and logistics business.

The transaction is expected to immediately add to NGL's distributable cash flow per unit.

The deal is expected to close in December.

NGL Energy Partners shares finished at $31.53 on Tuesday.

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