Delek To Buy Outstanding Alon Shares In All-stock Deal With Equity Valure Of $464 Million

Delek US Holdings Inc. said Tuesday it has agreed to acquire the shares of Alon USA Energy Inc. it does not already own in an all-stock transaction with an equity value of $464 million, and an enterprise value of $675 million, including debt and other items. The combined entity will be a Permian Basin play with an enterprise value of about $2.8 billion. Delek expects the deal to boost earnings in 2018, its first full year of operation. The Delek board has further approved a $150 million share buyback program. Delek owned about 33.7 million shares of Alon stock. The deal is expected to close in the first half. Alon shares surged 10.5% in premarket trade, while Delek was still inactive.