Vopak to Sell Savannah Terminal to BWC Terminals
Royal Vopak has entered into a binding agreement to sell its terminal in Savannah, Ga., to BWC Terminals, a U.S.-based bulk liquids storage company. The operational capacity of Vopak Terminal Savannah is 250,566 cbm, used predominantly for the storage of vegetable oils, asphalt, and specialty chemicals.
"Although within Vopak we will surely miss our colleagues at the Savannah terminal, we are convinced that our customers and colleagues will be well served by becoming part of BWC Terminals' network in North America,” said Maria Ciliberti, division president of Vopak Americas. “We would like to thank our Savannah colleagues and customers for their trust and contribution to Vopak and will work together towards a closing and smooth transfer to BWC Terminals."
The cash and debt free enterprise value of the transaction amounts to $106 million. The transaction, subject to certain post-closing adjustments and U.S. capital gains tax, will result in expected net cash proceeds of approximately $80 million. Vopak will report an exceptional gain in the first half of 2023. The impact of this divestment is not material for Vopak's 2023 outlook.
“The divestment of the Savannah chemical terminal is in line with our strategic goals to improve the financial performance of the portfolio, grow Vopak’s footprint in gas and industrial terminals and accelerate towards new energies,” said Michiel Gilsing, chief financial officer of Vopak. “We remain committed to actively manage our portfolio towards infrastructure investments that support the long-term cash flow profile and return ambitions of the company."
The completion of this divestment is subject to certain customary closing conditions and is expected to be finalized in the second quarter of 2023.