Marathon sells Minnesota refinery, downstream assets

Private Washington, DC-based equity firm Acon Investments LLC along with TPG Capital LP have signed a definitive agreement to acquire from Marathon Petroleum Co. LP its 74,000-b/d St. Paul Park, Minn., refinery, associated terminals, and other downstream assets in Minnesota for $900 million.

By OGJ editors
HOUSTON, Oct. 6
-- Private Washington, DC-based equity firm Acon Investments LLC along with TPG Capital LP have signed a definitive agreement to acquire from Marathon Petroleum Co. LP its 74,000-b/d St. Paul Park, Minn., refinery, associated terminals, and other downstream assets in Minnesota for $900 million.

Acon and TPG formed Northern Tier Energy LLC to operate the assets as a stand-alone company.

Marathon, Acon, and TPG first announced that a letter of intent had been signed in May (OGJ Online, May 19, 2010). Marathon anticipates closing to occur by yearend.

In addition to the refinery and terminals, the acquired assets include 166 SuperAmerica retail outlets (including six Wisconsin outlets), SuperMom's LLC, SuperAmerica Franchising LLC, interests in pipeline assets in Minnesota, and associated inventories.

“This proposed sale is part of Marathon's ongoing efforts to ensure the Company's asset portfolio is strategically aligned with its business plans, while maintaining its position as one of the leading refining, marketing, and transportation operations in the nation,” Marathon said.

The St. Paul Park refinery has 27,100 b/d of fluid catalytic cracking capacity and 18,500 b/d of semiregenerative catalytic reforming capacity.

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