Mergers & Acquisitions ·
CVR Energy agrees to acquire St. Paul Park and Mandan refineries from Marathon Petroleum for $4.2 billion
CVICvr Energy Inc
CVR Energy has entered into a definitive agreement to acquire the St. Paul Park Refinery in Minnesota, the Mandan Refinery in North Dakota, and associated marketing and logistics assets from Marathon Petroleum affiliates for an aggregate base cash purchase price of $4.2 billion, plus net working capital adjustments. The transaction includes 100% of St. Paul Park LLC membership interests, a 17% interest in Minnesota Pipe Line Company, and related infrastructure. CVR Energy intends to fund the acquisition using approximately $2.5 billion in new secured debt, an $800 million equity investment from Trafigura US Holdings, Inc., up to $500 million from Icahn Enterprises Holdings L.P., and existing cash on hand. The deal is expected to nearly double CVR Energy's crude processing capacity to approximately 384,000 barrels per day and increase pro forma EBITDA by over 105%. Closing is subject to antitrust approvals under the Hart-Scott-Rodino Act and other customary conditions. CVR Energy operates in the petroleum refining and nitrogen fertilizer manufacturing industries.