© 2014 The Texas Lawbook.
By Natalie Posgate – (November 13) – Dallas-based Alon USA Energy, Inc. has agreed to acquire the Krotz Springs Refinery in Louisiana from its Delaware limited partner, Alon USA Partners, LP for $437.5 million.
Both parties believe the transaction will simplify Alon Energy’s corporate and capital structure and provide Alon Partners diversification and reduce its dependence on a single asset.
Vinson & Elkins advised Alon Energy, which is the largest 7-Eleven licensee in the U.S. and operates approximately 300 convenience stores in Texas and New Mexico. The deal team included Houston partners Gillian Hobson, David Stone, Ryan Carney, Judy Blissard and Brian Moss; counsel Larry Pechacek; and associates Scott Rubinsky, Beth McEntee, Shannyn Piper, Guy Gribov, Zach Rider and Brian Russell.
Alon USA’s general counsel is James Ranspot, who has been at Alon since 2006. Before joining the company, Ranspot practiced securities and securities law, with a focus on public and private merger and acquisition transactions and public securities offerings.
Delaware law firm Richards, Layton & Finger advised Alon Partners’ conflicts committee of its board of directors, which approved the transaction for Alon Partners. The LP turned to Houlihan Lokey Capital, Inc. for financial advice.
The transaction is expected to close around Nov. 28.
Alon Partners also operates a crude oil refinery in Big Spring, Texas, which has a throughput capacity of about 73,000 barrels per day. The crude oil that Alon Partners refines is market primarily in West and Central Texas, Oklahoma, New Mexico and Arizona through its wholesale distribution network of Alon Energy’s retail convenience stores and other third-party distributors.
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