SemGroup buying Houston Fuel Oil Terminal Co. in $2B deal

Markets Associated Press

SemGroup Corp. plans to buy Houston Fuel Oil Terminal Co. in a more than $2 billion deal.

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SemGroup on Tuesday announced the planned acquisition from investment funds managed by Alinda Capital Partners. The agreement, including about 330 acres (130 hectares) along the Houston Ship Channel, is expected to close in the third quarter of this year.

SemGroup, based in Tulsa, Oklahoma, is a petroleum pipeline and storage company.

Houston Fuel Oil Terminal Co. stores, blends and transports residual fuel and crude oil via pipeline, ship, barge, rail and truck. The storage site includes more than 140 tanks ranging in size from 10,000 barrels to 400,000 barrels.