OCI’s Gavilon Sells Energy Business to NGL Energy Partners at $890 mln

OCI N.V. announced on Thursday that The Gavilon Group, a commodity management firm owned by Ospraie Management, General Atlantic, Soros Fund Management and OCI N.V., has reached an agreement to sell its energy business to NGL Energy Partners LP.

The definitive agreement contemplates the sale of Gavilon’s energy business on a cash-free, debt-free basis for a cash purchase price of US$ 890 million, which includes approximately $200 million of working capital, subject to a customary adjustment based on a target level of working capital to be delivered by Gavilon at the closing of the proposed transaction. The transaction is expected to close in December 2013, subject to customary closing conditions.

Gavilon’s energy business principally operates integrated crude oil storage, terminal and pipeline assets located in Oklahoma, Texas and Louisiana, along with a complementary crude oil and refined products supply, marketing and logistics business.

The Gavilon grains and fertilizer businesses were acquired by Marubeni for US$ 2.7 billion equity plus the assumption of US$ 2 billion in debt in July 2013.

Orascom Construction Industries – OCI (OCIC) expects to receive total cash proceeds from its share of ownership in both businesses to exceed US$ 660 million.