Husky Energy Completes Acquisition Of Superior Refinery In Wisconsin From Calumet Specialty Products For US$492 Million

Published: Aug 11 2017
Deal Summary

Husky Energy Inc., an integrated energy company, through its subsidiary Husky Superior Refining Holding Corporation, completed the acquisition of Superior refinery located in Superior city of Wisconsin, the US, from Calumet Specialty Products Partners, L.P., a refiner and processor of specialty hydrocarbon products, for a purchase consideration of US$492 million (MM).

The purchase price includes cash payment of US$435 MM, and an additional US$57 MM for net working capital, inventories, and reimbursement of certain capital spending.

The refinery produces gasoline, diesel, asphalt and heavy fuel oils with the crude primarily supplied through a pipeline and railcars of an Enbridge Inc. The refinery has aggregate crude oil throughput capacity of approximately 50,000 bd.

Tudor, Pickering, Holt & Co. acted as financial advisor while Kirkland & Ellis LLP acted as legal advisor to Calumet in the transaction. BMO Capital Markets Corp. acted as financial advisor, while Osler, Hoskin & Harcourt LLP and Milbank, Tweed, Hadley & McCloy LLP acted as legal advisor to Husky Energy in the transaction.

The transaction enhances Husky Energy’s downstream crude processing capacity, which is in line with its growing production.

The transaction implies a value of US$8,700 per bbl of throughput.

Deal history

Completed: On November 8, 2017, Husky Energy completed the acquisition of Superior refinery located in Wisconsin from Calumet, for a cash consideration of US$492 MM.

Announced: On August 11, 2017, Calumet entered into definitive agreements to sell the Superior refinery located in Wisconsin to Husky Energy, for cash consideration of US$435 MM, plus an additional payment for net working capital, inventories, and reimbursement of certain capital spending.

Rumor: On March 16, 2017, Calumet intends to sell its refinery located in Superior city, Wisconsin.

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