BRENTWOOD, Tenn.–(BUSINESS WIRE)–Delek Logistics Partners, LP (NYSE: DKL) announced today the closing of the previously announced acquisition of H2O Midstream, a portfolio company of EIV Capital, LLC. The H2O Midstream operations include water gathering, transportation, recycling, storage and disposal services in the Midland Basin in Texas. Total consideration of $230 million consists of $160 million in cash at closing and $70 million of convertible preferred redeemable equity. The transaction is being funded with cash and debt financing.
The acquisition of H2O Midstream supports our core strategy of providing a full midstream service solution to our existing and third-party customers in the prolific Permian Basin. H2O Midstream operations have significant overlap with our existing Midland, Texas operations. The acquisition also presents an opportunity to extract significant synergies through cost optimization and cross product sales.
About Delek Logistics Partners, LP
Delek Logistics Partners, LP is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. Through its owned assets and joint ventures located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the Gulf Coast region and giving effect to the H20 Midstream acquisition, Delek Logistics provides gathering, transportation, recycling, storage, water disposal and recycling services. Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) owns the general partner interest as well as a majority limited partner interest in Delek Logistics Partners, LP, and is also a significant customer.
