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Height Securities Advises Sprague Resources On its Acquisition of Coen Energy
Thursday 12 October 2017

12 October 2017 - US-based investment firm Height Securities, LLC served as sole financial advisor to New Hampshire, US-based Sprague Operating Resources LLC, a storage network for refined petroleum products during its acquisition of membership interests in Pennsylvania, US-based energy field services company Coen Energy, LLC and Coen Transport, LLC as well as four bulk plants and underlying real estate, the firm said.
Height advised Sprague on various facets of the transaction. The acquisition is Sprague's fifth of the year and expands its footprint into the Marcellus and Utica basins, particularly in the energy products and complimentary field services industries.
This deal was announced in September.
Sprague Operating Resources LLC is the operating subsidiary of New Hampshire, US-based refined petroleum products and natural gas company Sprague Resources LP (NYSE: SRLP).
Terms of the transaction were not disclosed. Sprague intends to fund the transaction with borrowings from its senior secured credit facility; closing is expected to occur in the fourth quarter.
The transaction is expected to contribute an additional USD 7m to USD 8m of adjusted EBITDA on an annual basis, and is also expected to be immediately accretive to unitholders.
This is Sprague's fifth acquisition of 2017. Sprague said Coen Energy expands both its geographic footprint and business model to include additional commercial fueling activities.
Sprague Resources LP is engaged in the purchase, storage, distribution and sale of refined petroleum products and natural gas. The company also provides storage and handling services for a broad range of materials.
Coen Energy provides energy products and complimentary energy field services to over 7,000 energy field services, commercial, and residential customers located in Pennsylvania, Ohio and West Virginia. US. The energy field services segment provides fuel sales, delivery, management and related services supporting the Marcellus and the Utica shale drilling activity.
The Coen Energy business is supported by four in-land bulk plants, two throughput locations, approximately 100 delivery vehicles and nearly 250 employees.
Details
Date Published: 12/10/2017
Target: Coen Energy, LLC and Coen Transport, LLC as well as four bulk plants and underlying real estate
Country: USA
Sector: Petroleum/Natural Gas/Coal
Type: Corporate acquisition
Financing:
Status: Agreed
Vendor:
Buyer: Sprague Operating Resources
Buyer Advisor: Height Securities
Comment:
Terms of the deal were not disclosed

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